[Click eStock] "Soulbrain, Full-Scale Earnings Turnaround... Top Semiconductor Pick"

[Asia Economy Reporter Kwon Jae-hee] Kiwoom Securities maintained its 'Buy' rating on Solbrain on the 9th, setting a target price of 370,000 KRW.

Solbrain's sales for the second quarter of this year are expected to reach 277.7 billion KRW, and operating profit 59.2 billion KRW, representing increases of 14% and 37% respectively compared to the same period last year. In the third quarter, sales are projected at 285 billion KRW and operating profit at 62.1 billion KRW, up 3% and 23% respectively, continuing to set record highs.

The strong performance of Solbrain is attributed to significant growth expected in the semiconductor etchant and secondary battery electrolyte segments. The turnaround in the secondary battery electrolyte segment, which had previously caused profitability decline and stock price drops, is now underway. The display segment, which underperformed in the second quarter, is also expected to improve. Additionally, the supply of new materials for large OLED panels and new semiconductor materials has begun to expand, leading to strong performance across all business areas. Accordingly, annual sales of 1.1444 trillion KRW and operating profit of 239 billion KRW are anticipated, marking record-high results.

Park Yoo-ak, a researcher at Kiwoom Securities, stated, "Solbrain experienced a sharp drop due to 'deterioration in secondary battery electrolyte profitability' and 'increased global economic uncertainty,' but has recently shown a rebound. Nevertheless, the stock price remains undervalued. As the profitability improvement of secondary battery electrolyte becomes visible, the growth potential of display and semiconductor materials will be re-emphasized, driving stock valuation. Therefore, we continue to recommend buying Solbrain as the top pick in the semiconductor sector."

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