[Click eStock] "Tes, Earnings Improvement Expected with Semiconductor Market Recovery... Target Price Maintained"

Kiwoom Securities maintained a buy rating and a target price of 26,000 KRW for TES on the 27th, stating that "an improvement in semiconductor industry conditions is expected to lead to better earnings." The closing price on the previous day was 18,830 KRW.

Securities company app, stock trading scene. Photo by Hyunmin Kim kimhyun81@

Park Yu-ak, a researcher at Kiwoom Securities, stated, "TES's sales in the fourth quarter of last year were 26 billion KRW, slightly below expectations, and the operating loss was 7.6 billion KRW, also below estimates," adding, "The operating margin showed a significant burden from fixed costs due to the decrease in sales."

However, the poor performance is expected to gradually improve with the recovery of the semiconductor industry. Researcher Park said, "Operating profit in the first quarter of this year is expected to be 5.5 billion KRW (turning to black), showing significant recovery compared to the previous quarter and the same period last year."

This is because the recognition of sales from new equipment delayed in the second half of last year is progressing, and Samsung Electronics is also expected to resume investment in memory front-end process equipment.

Researcher Park added, "In the first quarter of this year, Samsung Electronics is expected to carry out 'existing factory process transitions' and 'front-end process equipment investment at Pyeongtaek Plant 3,'" and "the supply of new equipment to SK Hynix is also becoming visible, which is expected to have a positive impact on future earnings forecasts. In this process, TES's earnings improvement is expected to be significant."

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