[Edaily Reporter Park Jeong-soo] On the 8th, Shinhan Investment Securities maintained its “Buy” rating on #BH, citing expectations for growth and a revaluation of its stock price following its entry into the robotics market, and raised its target price by 84% from 25,000 won to 46,000 won.
Oh Kang-ho, a research analyst at Shinhan Investment Securities, stated, “A shift in perception regarding the robotics value chain will lead to an upward revision in valuation,” adding, “We should focus on new growth drivers based on product competitiveness rather than the earnings volatility seen in the past, which was centered on smartphone demand.”
BH is a leading global manufacturer of flexible printed circuit boards (FPCBs) for organic light-emitting diodes (OLEDs). The company is expanding its application areas from mobile and IT OLEDs, and electric vehicles, into the robotics market. Shinhan Investment Securities highlighted the mid-to-long-term growth potential driven by increased demand for FPCBs in the robot joint sector and the expansion of the wireless charging business.
The firm projected that growth in the IT OLED business would gain momentum as shipments of flagship smartphones from major clients stabilize. Accordingly, it estimated that this year’s revenue would reach 1.9444 trillion won, an 8.5% increase year-over-year, while operating profit would rise 106.5% to 111.4 billion won. Net income attributable to controlling shareholders is forecast to increase 214.8% year-over-year to 97.6 billion won.
The target price was calculated using an estimated 2027 earnings per share (EPS) of 3,741 won and a price-to-earnings ratio (PER) of 12.3 times, based on the average of the past five years. Shinhan Investment Securities explained that it raised its EPS forecast to reflect the stabilization of flagship demand from clients and the full-scale growth of business segments in the second half of the year.
Research Analyst Oh stated, “As the company has entered a phase of expanding its downstream market and diversifying its business, a new valuation is necessary,” adding, “Depending on the speed of its entry into the robotics market, an additional valuation premium is also possible.”