[Alpha Biz= Reporter Kim Sangjin] Hana Securities has downgraded its target price for Seoul Semiconductor (046890) from ₩16,000 to ₩14,000, a reduction of 12.5%, while maintaining its 'Buy' rating. The firm noted that while Seoul Semiconductor has passed its performance low point, it still needs external growth drivers.
According to Hana Securities, Seoul Semiconductor's second-quarter revenue increased by 11% year-on-year to ₩283 billion, and its operating profit turned positive, reaching ₩4 billion. This marked a return to profitability after two years, exceeding market expectations.
The firm highlighted strong sales in IT and automotive segments. The increase in TV demand was attributed to the sports event effect within the IT sector. For the automotive sector, robust performance in external lighting contributed to stable sales. Hana Securities noted that the recent quarter’s results are improvements over the operating loss of ₩13.4 billion recorded in Q3 2023, reflecting cost and expense reduction improvements.
Hana Securities also pointed out that the increased revenue share from the automotive segment likely contributed to improved financial performance. With the breakeven point for the quarter confirmed at around ₩280 billion, the firm expects the company to maintain a positive profit trend in the second half of the year.
The firm projects that Seoul Semiconductor's Q3 revenue will increase by 4% year-on-year to ₩292.3 billion, with operating profit turning positive at ₩7 billion for the same period.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
