[Click e-Stock] "Tes, Undervalued Despite Record High Earnings This Year... Semiconductor Equipment to Be Revalued Early Next Year"

[Asia Economy Reporter Ji Yeon-jin] DB Financial Investment forecasted on the 27th that TES is still undervalued with a current price-earnings ratio (PER) of 9.8 times, and a semiconductor equipment revaluation will take place in early next year.

Lee Gyu-jin, a researcher at DB Financial Investment, said, "Recently, TES's stock price has been sluggish due to concerns over Samsung Electronics' reduced new investments next year following the reversal of memory price declines. However, with SK Hynix's expanded new investments, the entry of existing equipment into the foundry sector, and the supply of new film equipment, earnings are reaching record highs."

TES's sales in the fourth quarter of this year are expected to increase by 2.7% year-on-year to 56 billion KRW, and operating profit is projected to rise by 432% to 5.5 billion KRW. Despite a temporary gap in domestic equipment investments in the second half of this year limiting new orders, year-end new investments in SK Hynix M15 and M16, along with some maintenance investments from Samsung Electronics, are expected to achieve earnings that meet market expectations.

On the other hand, performance growth is expected to accelerate after the first quarter of next year when new equipment deliveries to SK Hynix begin. This year's performance is forecasted to achieve record highs with sales of 369.1 billion KRW (+50.1%) and operating profit of 67.2 billion KRW (+112%). Even assuming some delays in Samsung Electronics' new memory investments next year, sales are expected to increase by 2.1% to 377 billion KRW, and operating profit is projected to rise by 7.5% to 72.2 billion KRW, setting new record highs again due to benefits from SK Hynix M16's expanded new investments, the foundry business entry of 'Gas Etch' equipment, and new film entry of existing PECVD equipment. The researcher added, "If the memory market rebounds faster than expected, there is also a possibility of additional upward revisions in performance in the second half of next year due to accelerated investments in Samsung Electronics' Pyeongtaek 3."

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