[Click e-Stock] "Wonik IPS to Benefit from Client Factory Investments... Target Price Raised"

On September 4, SK Securities maintained its "Buy" investment rating on Wonik IPS and raised its target price from 37,000 won to 55,000 won, stating that "Samsung Electronics' investment in the Taylor fab (factory) in the United States is becoming more concrete."

Lee Dongjoo, a researcher at SK Securities, commented on the same day, "We have reflected assumptions regarding investments in the Taylor fab and the fourth line (P4) at the Pyeongtaek campus."

He analyzed, "After reaching a low point in the first quarter of this year, there was a strong rebound starting in the second quarter. The effects of Samsung Electronics' conversion investments were concentrated, and sales in China were also stronger than expected."

The increase in the proportion of semiconductor sales has led to improved profitability. Lee pointed out, "As the proportion of semiconductor sales rose to 90%, profitability also improved significantly."

He continued, "In the third quarter, as display sales are recognized, we expect a period of stabilization in performance. In the fourth quarter, with the concentrated effects of conversion investments and new memory investments at P4, sales are expected to reach the 30 billion won level for the first time in three years."

The scale of investment in the Taylor fab is also becoming more concrete. Lee explained, "The initial expansion is estimated at around 20,000 wafers per month, which is expected to translate into 13 billion won in sales for Wonik IPS. This represents about 12% of next year's sales."

Lee added, "Samsung Electronics' P4 is expected to reach 45,000 wafers this year and 60,000 wafers next year, while SK Hynix's Cheongju M15X is expected to invest in 10,000 DRAM wafers this year and 60,000 next year following its completion in November. Wonik IPS has secured both companies as clients."

He further stated, "As the investment cycle is arriving for the first time in four years, attention is needed across the entire equipment chain. We maintain our view that Wonik IPS is the top pick among equipment manufacturers."

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