[Click eStock] "Wonik Materials, Upward Trend Despite High Volatility"

On the 19th, IBK Investment & Securities analyzed Wonik Materials, a producer of industrial specialty gases, stating that "the benefits from the semiconductor industry turnaround cycle are expected to expand." They maintained a 'Buy' investment rating and a target price of 42,000 KRW.

Wonik Materials is a leading domestic company that has established a specialty gas supply business model for global semiconductor IDMs (Integrated Device Manufacturers, companies that handle everything from design to production). They supply dozens of types of specialty gases used in memory, non-memory, and display manufacturing in the form of products and merchandise.

As semiconductor technology advances, a variety of high-purity gases and specialty mixed gases are increasingly required. Analyst Geonjae Lee stated, "Wonik Materials' competitive edge lies in its self-developed purity control capabilities and mixing processes, and its on-site supply capacity to alleviate customer inventory burdens is also top-tier domestically," adding, "Currently, there are no companies identified that could threaten Wonik Materials' competitiveness in the short term."

Stock prices of semiconductor materials, parts, and equipment (SoBuJang) companies tend to rise proactively after confirming industry improvement trends rather than reactively after confirming earnings growth. He noted, "As the revival of legacy semiconductors is expected in the second half of the year, quick-moving investors have recently increased their exposure to semiconductor SoBuJang companies," and added, "The price increase of legacy semiconductors, which are commonly used rather than high-spec HBM products directly impacted by AI, signifies a turnaround in the overall domestic semiconductor industry, naturally leading to valuation premiums for traditional semiconductor SoBuJang companies."

Furthermore, with the increasing possibility of a ceasefire in the Russia-Ukraine region, which plays a crucial role as a global specialty gas supply hub, it is expected that securing raw materials will become easier than in previous years.

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