[Click eStock] "Wonik IPS, Expected Benefits from Semiconductor Equipment Investment Increase"

Korea Investment & Securities Issues 'Buy' Rating and 46,000 KRW Target Price... Closing Price on 12th at 33,000 KRW

[Asia Economy Reporter Kum Boryeong] Korea Investment & Securities has issued a 'Buy' rating on Wonik IPS, expecting its foundry equipment sales to grow as large as memory sales. The target price was raised by 15% to 46,000 KRW. The closing price on the 12th was 33,000 KRW.

The scale of domestic semiconductor companies' facility investments, which peaked in 2018, is analyzed to have decreased for two consecutive years until this year and is expected to turn to an upward trend next year. Researcher Yoo Jong-woo of Korea Investment & Securities explained, "The facility investment scale of Samsung Electronics and SK Hynix in 2021 is estimated at 44 trillion KRW, a 31% increase from the previous year," adding, "Samsung Electronics is expected to significantly increase investments in DRAM and foundry, and SK Hynix in NAND facilities compared to this year."

Wonik IPS is expected to continue high growth based on semiconductor equipment with the widest process coverage in Korea and a diversified display equipment lineup. Researcher Yoo said, "Next year, with the recovery of the memory market and the expansion of Samsung Electronics' 5nm foundry facility investment, Wonik IPS's sales are expected to increase by 16% year-on-year," adding, "It covers the most processes among domestic semiconductor front-end equipment companies, so it can benefit from the increase in facility investments by domestic semiconductor companies in 2021. We maintain it as a top pick among semiconductor equipment companies."

This content was produced with the assistance of AI translation services.