[Feature Stock] RFHIC, Gains on Expectations of Prolonged U.S.-China Communication Equipment Sanctions

RFHIC is performing strongly due to expectations that U.S. sanctions on Chinese communication equipment will be prolonged. Han Asia Securities analysts believe that U.S. sanctions on China’s communication equipment are likely to continue for more than 5 years and will not be affected by changes in political conditions.

According to Korea Exchange data, RFHIC closed at 107,500 won, up 2,200 won (2.09%) from the previous trading day.

In its industry analysis report, Han Asia Securities judges that, because U.S. sanctions on China are closely related to the global fourth industrial hegemony competition and security concerns, the likelihood of sanctions easing is low even if there are diplomatic variables such as U.S.-China summit talks. The report explains that even if the political landscape in the U.S. changes, the sanctions tone will remain.

In particular, while the U.S. is considered competitive in areas such as artificial intelligence, robotics, and quantum technology, it is viewed as relatively weak in wireless communication equipment. Therefore, the likelihood that the U.S. will strengthen its supply chain by working with companies in Korea, Europe, and Japan is increasing, and domestic wireless communication equipment companies are expected to benefit in the medium to long term.

Previously, Han Asia Securities predicted in its April report that the investment cycle for 5G SA and 6G, as well as the widespread adoption of physical AI, will improve leading indicators for the communications equipment industry. This time, the report highlights the U.S. frequency auction scheduled for June as the main turning point and says there is a need to pay attention to domestic wireless communication equipment stocks, led by RFHIC.

Market analysis suggests that, before the second half of 2026—which is seen as the time when the U.S. market starts to build momentum—order expectations for related stocks have already begun to be reflected in their share prices.