[Click eStock] "DB HiTek, Taiwan Competitor Shutdown... Expecting Price Increase"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 14th that it maintains a buy rating on DB HiTek, expecting the foundry selling prices to continue rising this year, and raised the target price from 90,000 KRW to 100,000 KRW.

Researcher Lee Subin of Daishin Securities explained, "Taiwanese competitor UMC recently halted operations at part of its 8-inch fab due to COVID-19 cases. In the ongoing semiconductor supply shortage situation, the competitor's production restrictions are expected to positively influence negotiations on 8-inch foundry prices," adding, "DB HiTek's production is expected to operate at full capacity throughout the year, and selling price increases are also anticipated to continue."

Last year's Q4 sales of the company recorded 367.9 billion KRW, a 12% increase from the previous quarter, and operating profit rose 16% to 138.1 billion KRW, exceeding expectations. The operating margin rose 2 percentage points from the previous quarter to 38% even during the off-season, which is estimated to be thanks to the rise in 8-inch foundry selling prices.

This year's sales are expected to increase 26% year-on-year to 1.525 trillion KRW, and operating profit is projected to grow 45% to 577 billion KRW.

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