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Entered 2024.04.27 07:00 Modified 2024.04.27 07:34
Wisol, Korea’s only RF parts company
Stock price rose 45.41% in 6 months
Turned into a surplus last year… “This year’s operating profit is 26 billion won.”Company “Enter the PAMiD market in the second half of the year”
Sales are expected to exceed KRW 200 billion within 2-3 years
“We are also strengthening our automotive RF parts sales capabilities.”Securities company’s highest target price is 11,000 won
Getty Images bank 50% back even if purchased 6 months ago.
There is 19 times the rate of return on term deposits of one year in commercial banks (based on 2.65% per annum). ‘Ggeolmusae’ (a new word created by combining the words to do and a parrot that repeats words) is also an item to be regretted. This is the story of Wisol, ranked 343 in KOSDAQ market capitalization (KRW 250 billion). The stock price on the 27th was 8,870 won, up 45.41% compared to 6 months ago (6,100 won on October 27, 2023). On the 25th, it hit a 52-week high of 9,130 won. Wisol is the only Korean RF (Radio Frequency) component company that develops, manufactures and sells RF components necessary for mobile phone communication. It was founded in September 2008 as a spin-off from Samsung Electro-Mechanics with Filter SAW (Surface Acoustic Wave) technology, which is the core of the business Capture Wisol stock price graph Mobile phones must accept all communication methods from the such as LTE and 5G to function normally. A single mobile phone contains about 40 or more surface acoustic wave filters (SAW Filter, a component located under the antenna that enables the reception of data, voice, etc. by passing specific frequencies required for mobile phone communication received by the antenna using surface acoustic waves selectively.) A transmit/receive switch (Duplexer) is used, and Wisol supplies RF module products that combine various semiconductor devices and individual products such as SAW Filter/ Duplexer, antenna switch, and Low Noise Amplifier (LNA) for domestic and foreign mobile phone manufacturers. Its main business is Wisol Factory 2 Headquarters, located at 531-7 Jajang-ro, Osan-si, Gyeonggi-do. Provided by Wisol
The only RF parts company from Korea… Negotiated with Samsung Electronics, LG Electronics, etc.
Centered around the Korean corporation, the company has production corporations in Tianjin, China and Hanoi, Vietnam, and a research and development corporation in Japan. In Korea, RF chips are produced through product development through collaboration with a Japanese subsidiary and the fab process, which is a core process for the production of SAW Filters and Duplexers. The Chinese and Vietnamese subsidiaries produce finished products using RF chips made in Korea through a modularization process that uses PCBs to package or combine them with various semiconductor devices. Major customers are mobile phone manufacturers such as Samsung Electronics, Xiaomi, Oppo, and Vivo. Recently, it has entered the automotive RF parts market and supplies to LG Electronics and LG Innotek, and its competitors include Japan’s Murata and America’s Qualcomm.
Last year, it recorded sales of 369.7 billion won and an operating profit of 13.5 billion won. We managed to turn a profit compared to the previous year. The share of customers is Samsung Electronics at 55%, Chinese mobile phone companies at 43%, and automotive customers such as LG Electronics at 2%. Daishin Securities expects sales of 431 billion won and operating profit of 26 billion won this year. Provided by Wisol On the 27th, a Wisol official announced this year’s management strategy, saying, “We are carrying out two key tasks for medium to long-term growth.” He said, “Through research over the past two years, we have developed a module product (PAMiD, filter + switch + power amplifier) that includes PA We will enter the PAMiD market in the second half of the year, and we expect sales of more than 200 billion won within 2 to 3 years “He emphasized. He also said, “We will strengthen our sales capabilities in the automotive RF parts market.” He said, “The TCU (Transmission Control Unit) of recently produced vehicles has RF components on par with mobile phones to perform communication,” and added, “The automotive RF component market is growing at an average of 15% the year. a year due to the growth of electric vehicles and autonomous vehicles “It is expected to grow rapidly at about %,” he said. He added, “We have been collaborating with LG Electronics for about three years,” adding, “We expect sales of more than 10 billion won in this area this year.” The key point to watch is whether the company will achieve sales of more than 50 billion won within two to three years in a market dominated by Qualcomm in the United States. Based on this business momentum, we aim to achieve sales of 700 billion won and operating profit of 70 billion won by 2027. An employee works in the great line at Wisol headquarters. The total number of shares offered by Wisol is 28,186,941, and the largest shareholder is Daedeok, who holds around 34% of the shares. National pension is 6.03%, treasury stock is 1.83%. Foreign ownership is 4.95%, and distribution volume is more than 50%. As of the end of last year, he owned 133.6 billion won in cash assets, 11.2 billion won in land, and 39.9 billion won in buildings. This is over 70% of the market capitalization (KRW 250 billion).
It is a burden that Chinese companies continue to attack the RF parts market. They compete through low-cost attacks based on the support of the Chinese government. However, due to intense competition, the Chinese government reduces indiscriminate support, and due to low technology, there is a large deficit, so the industry believes that price competition will disappear within one to two years. Wisol also runs an internal bowling competition to promote physical strength and unity among employees. Provided by Wisol
Stock prices with high targets… KB證 “11,000 won”
Due to expectations for good performance, five reports were released by securities firms this year. Park Kang-ho, a researcher at Daishin Securities, said, “First quarter sales are estimated at 108.4 billion won (13.1% increase compared to the previous year) and operating profit at 7.2 billion (93.3% increase) .” “Amid strong sales of Samsung Electronics’ Galaxy S24, sales of new products for HS filters have boosted sales “The profit margin will exceed estimates,” he predicted. Regarding the meaning of HS filter sales, he said, “Profitability has improved due to increased sales of filter modules, focusing on single products such as saw filters, and annual sales are expected to record more than 400 billion won for the first time this year. .” In addition, this year’s operating profit margin is expected to be 5-7% and a recommendation is presented to increase the proportion. The target stock price was raised from 7,600 won to 10,000 won.
Choi Seung-hwan, a researcher at Shinhan Investment & Securities, said, “Performance was slow between 2020 and 2022 due to intense competition and the coronavirus, but it turned into a surplus last year and growth is resuming with new products this year,” adding, “It is considered to be the beginning of a turnaround.” Employees work at Wisol’s Hanoi branch in Vietnam. Wisol Lee Chang-min, researcher at KB Securities, said, “We adjusted the 10-year average ROE (return on equity) estimate up 1.1% compared to the previous one, reflecting the improvement in the cost structure through the decline. in the price of key materials and internalisation, and the improvement in the operating rate due to the recovery of downstream demand was 7.4% → 8.5%,” he said, suggesting that the top stock price target of 11,000 has been achieved. There is potential side by side of 24.01% compared to the current stock price.
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