[Featured Stock] Lake Muti Benefits from SK-Materials Merger... Samsung Electronics Interest Expected to Grow

[Asia Economy Reporter Hyunseok Yoo] Lake Materials is showing strong performance. It appears that the analysis of being the biggest beneficiary of SK Trichem's growth has influenced the stock price.

As of 2:24 PM on the 23rd, Lake Materials was trading at 4,935 KRW, up 9.42% (425 KRW) compared to the previous trading day.

Seungcheol Lee, a researcher at Kakao Pay Securities, explained, "With SK Materials, SK Group's IT materials company, merging into SK, it is expected that SK's investment division will pursue business more aggressively in the future."

He added, "After SK Materials split into holding and business divisions, and the holding division merged with SK, the existing subsidiaries of SK Materials will be incorporated into SK-affiliated companies under SK."

The researcher emphasized, "Through this merger, SK Trichem, which is rapidly growing in both scale and profit, is expected to be highlighted. SK Trichem accounted for about 25% of SK Materials' operating profit last year."

He said, "Lake Materials signed a supply contract worth 18 billion KRW annually for High-K semiconductor precursors with SK Trichem last February. This is estimated to be about 10% of SK Trichem's 2021 sales, and the end customer is presumed to be SK Hynix."

Lee analyzed, "Along with the increase in High-K precursor sales, Lake Materials' performance is rapidly improving. Second-quarter sales and operating profit increased by 111% and 1295% year-on-year, respectively."

Furthermore, he estimated, "With an operating profit of 9.4 billion KRW in the first half of this year, it has already reached twice the annual operating profit of the previous year. Considering that semiconductor material companies usually have their peak season in the second half, the annual operating profit this year is expected to exceed 20 billion KRW."

He predicted, "As semiconductor fine processes advance, demand for new precursors will strengthen, increasing interest not only from SK Hynix but also from Samsung Electronics."

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