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KB Securities Cuts SoluM Price Target Amid North American Supply Delays
Electronic Technology · Electronic Components · yonhap_finance · 2026-09-01
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KB Securities has lowered its price target for SoluM to 22,000 KRW, citing delays in electronic shelf label (ESL) shipments to a key North American client.
What Happened
Price Target Adjustment: KB Securities has revised its target price for SoluM down to 22,000 KRW, reflecting delays in ESL shipments to a major North American customer. Consequently, the estimated three-year CAGR for operating profit has been lowered from 34% to 25%.
Earnings Outlook: The annual operating profit forecast for this year has been cut by 21.5% to 75 billion KRW, with next year's estimate also trimmed by 4.9%. Despite these adjustments, the company is still expected to post a 21% year-on-year increase in Q3 operating profit to 17.9 billion KRW.
Segment Performance: While power module revenue is projected to grow by 51% quarter-on-quarter and the cosmetics business remains stable, the automotive electronics division faces profitability concerns due to a sluggish TV market. A shift toward lower-priced products by major clients is further pressuring margins.
Investment Stance: Despite the supply chain headwinds, the firm maintains a 'Buy' rating, citing growth potential in the power module sector. Future stock performance will likely depend on the company's ability to overcome these temporary delivery setbacks.
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