4Q19 sales missed our estimate by 5.6% due to larger-than-anticipated camera module inventory adjustments.
However, operating profit beat our forecast by 4.6% to come in at KRW138.7bn.
In 1Q20, we expect sales and operating profit to grow 11% and 40% QoQ to KRW2tn and KRW193.7bn.
We maintain BUY and our six-month-forward target price of KRW155,000 (2.0x 2020F BPS) on SEMCO (OTC:SMSGF). At KRW1.84tn, SEMCO's 4Q19 sales missed our estimate by 5.6% due to larger-than- anticipated camera