[Click eStock] "Soulbrain, Expected Sales Growth in Q2 This Year"

[Asia Economy Reporter Kwon Jae-hee] Ebest Investment & Securities on the 24th issued a buy rating and a target price of 330,000 KRW for Solbrain.

Solbrain is a company specializing in the production of etchants used in the cleaning and etching processes of semiconductors and displays. Its market share in the semiconductor sector approaches 85%.

Solbrain's sales this year are expected to reach 1.1 trillion KRW, with an operating profit of 214.2 billion KRW, anticipated to recover from last year's sluggish profit growth. The first quarter results are projected to show sales of 265.8 billion KRW and operating profit of 49 billion KRW, improving compared to the previous quarter and likely forming the bottom of quarterly performance. Japanese company Kioxia is expected to experience a sharp decline in production due to a line contamination incident at the end of January and an earthquake in March, while as a counter-effect, NAND orders from customers are expected to flood Samsung Electronics and SK Hynix.

Nam Dae-jong, a researcher at Ebest Investment & Securities, analyzed, "Although these effects have not yet translated into increased orders for Solbrain, it is highly likely that sales growth will follow from mid-second quarter of this year as memory manufacturers deplete their inventories."

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