Segyung Hitech: Attractive as Sole Supplier of Foldable Display Materials

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The author is an analyst of NH Investment & Securities. He can be reached at kyuha.lee@nhqv.com. — Ed. 

 

We upgrade our rating on Segyung Hitech to Buy and raise our TP, considering the company’s growth potential as an exclusive parts maker for foldable smartphones (protective films) and recent recovery in earnings visibility. Well-positioned to benefit from expansion of the global foldable smartphone market as well as the growth of domestic customers, Segyung Hitech represents an attractive investment vehicle.

Upgrade to Buy in consideration of foldable smartphone growth potential and recovery in earnings visibility

We upgrade our rating on Segyung Hitech from Hold to Buy and raise our TP from W19,000 to W39,000. The upward adjustments stem from: 1) a hike to our target P/E from 13.5x to 17.5x; 2) a change in valuation base year from 2021E to 2022F; and 3) a 27.2% boost to 2022F OP on an increase to our 2022 foldable…

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