[Edaily Reporter Kwon Oh-seok] Shinhan Investment Securities announced on the 17th that it is maintaining its “Buy” rating on #KH Batec and raising its target price from 14,000 won to 17,000 won.

Oh Kang-ho, an analyst at Shinhan Investment Securities, said, “We are focusing on new growth drivers stemming from diversification in downstream markets. In terms of earnings, growth in automotive electronics and robotics is expected to gain momentum in 2027.” He added, “Regarding valuation, there is potential for an upward revision as the company shifts from the smartphone value chain to the robotics value chain. “Further earnings upgrades are also positive if flagship demand improves due to enhanced artificial intelligence (AI) competitiveness and strengthened foldable form factors. We are focusing on medium- to long-term growth momentum rather than short-term earnings,” he said.
He analyzed, “While the downstream market is expanding from a smartphone-centric focus to automotive parts and robotics, the company is characterized by eco-friendly manufacturing processes such as Chixomolding, thin-film casting, and hinge manufacturing technologies,” adding, “We estimate that 2026 revenue and operating profit will be similar to the previous year. Short-term earnings will be smartphone-centric.”
He further elaborated, “In the long term, expanding sales of automotive electronics components and robots is a key investment focus,” adding, “The company’s medium- to long-term growth potential is also positive, thanks to the stabilization of smartphone demand driven by enhanced AI capabilities.”
Researcher Oh noted, “In the robotics sector, the company is scheduled to supply outer casings for 53 types of collaborative robots in 2026, and R&D on gear reducers is underway. We also expect an expansion of the production lineup at the Vietnam subsidiary.” He added, “For automotive parts, we estimate 2025 revenue at approximately 250억 won. For this year, we forecast 450억 won, an 80% increase from the previous year, and expect approximately 1000억 won in 2027. Business diversification is a factor driving a revaluation of the company’s valuation,” he emphasized.