[Click eStock] "Oceanbridge Benefits from SK Hynix and Secondary Battery Investment Expansion"

Kiwoom Securities Report

[Asia Economy Reporter Minji Lee] Kiwoom Securities forecasted on the 13th that Oceanbridge's stock price is expected to turn upward due to increased supply of semiconductor materials and equipment and successful new entry into the secondary battery market.

Oceanbridge is a supplier of semiconductor materials and equipment and recently developed and newly supplied secondary battery equipment. Its major customers include SK Hynix and key domestic and international battery companies including Company L for secondary batteries.

In the semiconductor materials sector, it supplies DRAM precursors to SK Hynix. It is currently expanding new production facilities for semiconductor specialty gases, with full-scale supply expected from the second half of next year. Researcher Park Yuak of Kiwoom Securities said, “This signifies an expansion of the upstream market from semiconductor precursors to specialty gases,” adding, “It is a factor for valuation increase of the stock price.”

In the semiconductor equipment sector, it supplies cleanroom equipment (CCSS), and is expected to benefit from SK Hynix’s M15 and M16 factory investments next year, with mid- to long-term benefits anticipated from the expansion of the Yongin cluster. In the secondary battery sector, it started supplying a new product, the electrolyte central supply system, in the third quarter. Supply expansion is expected to domestic and international battery companies including Company L and Company S.

As of the third quarter, cumulative consolidated sales amounted to 56.5 billion KRW, with operating profit around 8.6 billion KRW. The materials and cabinet sector accounted for 56% of sales, and the equipment sector 44%.

Fourth quarter sales are expected to reach 32 billion KRW, and operating profit 6 billion KRW, increasing by 36% and 100% respectively compared to the previous quarter. This is expected to reflect strong performance in semiconductor equipment due to expanded infrastructure investment by SK Hynix.

Next year’s sales are projected at 110 billion KRW, and operating profit at 18.5 billion KRW, representing growth of 24% and 27% year-on-year. This is due to the expanded cleanroom investments at SK Hynix’s M15 and M16 and the benefits from production facility expansions by secondary battery customers. Furthermore, semiconductor specialty gas supply is expected to be in full swing from the second half of the year, and the consolidated subsidiary Jeil ENG is also expected to see significant performance improvement through supply of semiconductor gas cabinets.

Researcher Park Yuak said, “Oceanbridge’s stock price has been under adjustment since the beginning of the year due to SK Hynix’s conservative investments and resulting poor performance,” adding, “With successful new entry into the secondary battery market and expected full-scale performance growth starting from the fourth quarter, a stock price turnaround is anticipated.”

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