New America, turning losses into profits still falls short of market expectations... stock price rises slightly

ShinDei stock closed slightly higher on the 25th. This is interpreted as the market reacting to the news that, although last quarter’s performance did not meet expectations, the company turned a profit year-over-year.

On that day, in the KOSDAQ market, ShinDei’s stock price rose 0.75% from the previous day, closing at 53,800 KRW. The stock initially surged over 6% in the morning but later turned downward. Last quarter, ShinDei reported an operating profit of 11 billion KRW, turning a profit but still falling short of market expectations. However, expectations for improved sales and profitability positively influenced the stock price.

DB Securities analyst Jo Hyeon-Ji highly praised ShinDei’s potential for sales growth this year in areas such as server module printed circuit boards and raised the target price to 65,000 KRW. She added that ShinDei’s capacity utilization rate is expected to rise from 2025, potentially benefiting from operating leverage due to increased orders starting in the first quarter of this year.

However, whether the company can reduce the proportion of Tenting substrate products is seen as a key variable affecting profitability. Korea Investment & Securities analysts Park Sang-Hyun and Lee Jae-Sung believe that rising prices of core raw materials like gold and copper could increase variable costs, but if capacity utilization and product structure improvements continue, there is still a high likelihood of quarterly profit improvements.

This trend reflects market expectations for ShinDei’s sustained profitability and sales growth potential, which could positively impact the stock market in the future. However, external factors such as product mix and raw material price fluctuations require careful attention.