SEOUL, KOREA - Established in 1992, Newflex Technology (Newflex) is a dedicated manufacturer of flexible printed circuit boards (FPCB). Major products are FPCB for handsets (89% of 2013 sales) and metal PCBs for TVs and consumer electronics (10%).
- Management is targeting 2Q13 sales of W40bn and OPM of 5%. Sales guidance is in line with our estimate, but OPM is 0.9%p below our estimate.
- Three catalysts from 3Q13; 1) Release of new Kindle Fire model, 2) Release of new Samsung tablet and 3) Release of new LGE flagship smartphone.
- 2013F separate-based guidance of W200bn sales (+76% YoY) and 7% OPM is easily achievable, on: 1) increased smartphone shipments (+104% YoY) by LGE, 2) greater FPCB supply to handset component vendors for Samsung, and 3)release of Amazon’s new tablet.
