[Click eStock] "Nextin, Expected Benefits from New Equipment Next Year... Target Price Up"

Shinhan Investment Corp. raised the target price for semiconductor equipment company Nextin from 76,000 KRW to 87,000 KRW on the 15th. The investment rating was maintained as 'Buy.'

Nextin is estimated to record sales of 36 billion KRW and operating profit of 18.6 billion KRW in the second quarter. This represents a sharp increase of 94.4% and 122%, respectively, compared to the previous quarter. The significant performance growth in the second quarter was driven by China. Despite the downturn in the semiconductor industry, China continues to implement support policies to secure semiconductor self-sufficiency, resulting in high demand for production facility expansions by Chinese manufacturers.

Nextin is expected to achieve annual sales of 132.1 billion KRW and operating profit of 64.2 billion KRW this year, representing increases of 14.9% and 13.6%, respectively, compared to last year. Although semiconductor factory equipment investment is expected to decrease by 22% year-on-year this year due to the semiconductor demand slump that began last year, the company's performance growth is viewed positively.

Namgung Hyun, a researcher at Shinhan Investment Corp., said, "Concerns about the US-China semiconductor war and the sluggish diversification of domestic clients are partially easing," adding, "Especially, the expansion of the product portfolio this year is positive." He further stated, "Starting in 2024, benefits from new equipment are expected."

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