Benefit from the increase in demand for

Frontier (370090.KQ)
- Gojingamrae (苦盡甘來)

1) Benefit from the increase in demand for equipment due to the growth of the autonomous driving market
- With the expansion of the ADAS (Advanced Driver Assistance Systems), AD (Advanced Driver Assistance Systems), and AD (Autonomous Driving) markets, the company is expected to increase demand for electric camera equipment. - As the level of autonomous driving increases, the required camera load increases (LV27 to 8 → 12 or more LV3). The company supplies the core process assembly (Active Alignment) and inspection (EOL) equipment for autonomous sensing cameras. Currently, about 85% of the company's electric equipment sales come from the North American electric vehicle maker, a leading self-driving company.

2) Short-term earnings slump inevitable, mid- to long-term growth is effective
- Due to the impact of the electric vehicle cascade (temporary slowdown in demand), core customer production plans have been reduced, and equipment orders from major camera module vendors have been delayed. As a result, the company's order backlog has continued from the second half of last year to the first half of this year, and the company's order backlog has been reduced to 4.61 billion won as of the end of the second quarter.
- Starting with the gradual expansion of orders in the second half of this year, it is expected that the order momentum will be confirmed in earnest from the first half of next year. In the second half of this year, there is a high possibility of winning orders from new vendors and new End-User customers. Short-term poor performance is inevitable due to the influence of the forward market, but the mid- to long-term growth potential is effective by supplying ADAS/autonomous driving core solution equipment to most of the vendors of end customers, a leading autonomous driving company.