Kiwoom Securities lowers MCNEX target stock price from 35,000 won to 30,000 won

Kiwoom Securities lowered its target stock price from 35,000 won to 30,000 won on the 1st, saying that MCNEX [097520] is continuing to perform poorly due to the limited impact of component prices due to the rise in memory prices.

MCNEX is a camera module specialist company that mainly supplies camera modules for mobile and automobiles.

Researcher Hyunjin Oh said in a report that day, "We believe that the environment of the upstream market in the mobile sector will continue to be unfavorable for the time being, so we reflected the profitability of camera modules and drivetrain components more conservatively than before."

Accordingly, this year's sales are expected to be KRW 1.1865 trillion, a 7% decrease from last year, and operating profit is expected to be KRW 25 billion, a 52% decrease.

Researcher Oh predicted, “We expect a rebound in sales and profitability in the third quarter compared to the previous quarter due to the launch of the foldable smartphone model for which we are supplying the drivetrain, but the extent of the rebound will be limited due to the impact of exchange rates.”

However, he added, "(MCNEX) has established a solid position in the camera module market despite the stagnant growth of the smartphone market that has lasted for several years," and added, "We expect a rapid rebound in performance when the mobile parts market normalizes in the future." At the same time, the investment opinion on MCNEX was maintained as ‘buy’.

Specifically, it was predicted that component prices would gradually normalize after next year. In addition, he said, “We are also looking forward to the performance of mid- to long-term growth industries in the robotics and automotive semiconductor sectors after 2027.”

MCNEX's current stock price is 19,060 won based on the previous day's closing price.