[Click eStock] "PSK, Semiconductor Sector Volatility ↑... Target Price ↓"

BNK Investment & Securities explained on the 26th that it is lowering the target price for PSK due to increased volatility in the semiconductor sector. The investment opinion remains a buy, but the target price was lowered to 33,000 KRW.

PSK recorded sales of 97.1 billion KRW and operating profit of 22.8 billion KRW in the second quarter. This represents increases of 48% and 1449%, respectively, compared to the same period last year. Minhee Lee, a researcher at BNK Investment & Securities, said, "The reason profitability improved significantly more than expected is that the proportion of exports to China increased compared to the previous quarter," adding, "This is because sales contributions from the new Bevel Etch equipment maintained similar performance in the second quarter as in the previous quarter."

He forecasted that sales of Bevel Etch would continue to increase in the second half of the year. He explained, "Bevel Etch equipment has recently been mainly sold in the DRAM sector, and we expect performance in the second half to exceed that of the first half."

He emphasized, "Domestic memory companies, which have mainly invested in high-bandwidth memory (HBM), plan to expand production capacity (CAPA) focused on DRAM at new factories to alleviate concerns about server DRAM supply shortages next year," adding, "PSK is expected to increase its market share in the Bevel Etch market next year and achieve a higher penetration rate than this year."

BNK Investment & Securities explained that although it is lowering the target price for PSK, it is necessary to approach it with a long-term perspective. He said, "Among equipment companies, PSK is noteworthy for continuing outstanding performance within the sector by increasing penetration of new equipment and benefiting from the US-China conflict," adding, "It is necessary to approach it from a long-term perspective."

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