[Click eStock] Juseong Engineering, Time to Focus on Semiconductor Equipment Stocks... Target Price Raised to 56,000 Won

On the 11th, Korea Investment & Securities raised the target price for Juseong Engineering to 56,000 KRW, stating that as a semiconductor equipment stock, it has sufficient potential for stock price growth. The investment opinion was maintained as 'Buy.'

Chaemin-sook, a researcher at Korea Investment & Securities, said in a report on the same day, "The market significantly reflects the value of semiconductor equipment while relatively undervaluing display and solar equipment." She analyzed, "Especially after the split, it is the time when memory CAPEX recovery has begun in earnest, and an increase in the value of semiconductor equipment stocks is expected." Accordingly, she added that buying at the undervalued point before the split is a wise strategy.

Juseong Engineering's second-quarter sales are expected to be 100 billion KRW, and operating profit 29.8 billion KRW, exceeding the consensus of 26.8 billion KRW by 12%. Researcher Chaemin-sook explained, "About 20 billion KRW in sales, delayed due to installation delays of equipment within the fab of Chinese customers in the first quarter, is expected to be reflected in the second quarter." She added, "Since semiconductor equipment for China has a high profit margin, sales growth will be accompanied by an increase in operating profit and improvement in profit margin."

She pointed out two investment points for Juseong Engineering. First, the investment in 1b nm DRAM by domestic customers will be in full swing from the third quarter, significantly reflecting the benefits of increased memory CAPEX. Second is the expansion of the equipment business into the non-memory sector. Researcher Cha said, "The TGV deposition ALD equipment, jointly developed with customers for over five years, is scheduled for pilot shipment within the third quarter." She added, "Especially, with the resumption of Europe's solar investment, which was delayed due to the Russia-Ukraine war, the order backlog is increasing, which is positive."

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