[Click eStock] "TES, Focus on SK Hynix's Investment... Target Price Up"

On September 15, Hanwha Investment & Securities raised its target price for TES from 29,000 won to 45,000 won. The company explained that, as with this year, an expanded supply to SK Hynix is expected to make a significant contribution to earnings growth next year.

Hanwha Investment & Securities forecast that TES's revenue for the third quarter of this year will be 73.7 billion won, and operating profit will be 10.1 billion won, representing a quarter-on-quarter decline of 10% and 51%, respectively.

Kwangjin Kim, a researcher at Hanwha Investment & Securities, analyzed, "Supply to SK Hynix is expected to temporarily decrease ahead of the M15X investment, and revenue from Chinese customers, which was unexpectedly high last quarter, is also expected to decline again. These factors are likely to contribute to the negative growth."

However, performance is expected to rebound in the fourth quarter. Revenue for the fourth quarter is estimated at 89.1 billion won, up 21% from the previous quarter, while operating profit for the same period is projected to grow 90% to 19.2 billion won.

Researcher Kim explained, "This is because the positive effects of Samsung Electronics' P4 investment will continue, and revenue recognition from SK Hynix's M15X orders is expected to begin in earnest. In fact, two separate SK Hynix orders totaling 34.3 billion won were announced this month, which are believed to be related to the M15X investment."

Kim added, "TES entered a strong earnings growth phase starting in the fourth quarter of last year, driven by customers' expanded investments and contributions from new equipment sales, and this earnings growth trend is expected to continue through next year. In particular, attention should be paid to SK Hynix's investment next year, as M15X DRAM 1b investment is expected to increase compared to this year, and there is a high possibility that DRAM 1c conversion investments will also proceed at existing fabs."

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