Unisem Shines with Strong Earnings Despite Worsening Investment Sentiment in Semiconductor Sector

[Asia Economy Reporter Jang Hyowon] Amid deteriorating investment sentiment in the semiconductor sector in the market, semiconductor and display equipment company Unisem is being analyzed as a relatively safe investment destination.

Unisem announced on the 13th that its consolidated operating profit for the second quarter reached 14.7 billion KRW, a 51.1% increase compared to the same period last year. During the same period, sales were 86.1 billion KRW and net profit was 11.8 billion KRW, increasing by 52.8% and 51.0%, respectively.

Typically, the first quarter results are the strongest, but in the second quarter of this year, results surpassed those of the first quarter. This is interpreted as benefiting from non-memory foundry investments in the upstream industry and increased demand for scrubbers used in etching processes.

Kim Kyungmin, a researcher at Hana Financial Investment, evaluated, "The increased sales proportion of non-memory semiconductor equipment compared to the same period last year and the expansion of scrubber applications show that the company is evolving into one that aligns with ESG trends, which is positive."

Unisem’s performance is expected to show a generally high-to-low pattern in the first half of the year as major investment projects conclude. However, sales are anticipated to increase each quarter compared to the same period last year.

Researcher Kim said, "Unlike the first half, third-quarter sales will mainly come from semiconductor and display equipment for overseas customers," adding, "Unisem’s strength lies not only in its very high market share among domestic customers but also in steady equipment sales to customers in China and Japan."

He continued, "Although investment sentiment in the semiconductor sector has recently deteriorated sharply and both large-cap and small- to mid-cap stocks have recorded price declines, Unisem is judged to be a relatively safe investment among small- to mid-cap stocks and within the semiconductor equipment sector."

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