[Click eStock] "Chemtronics: Focus on Mid- to Long-Term Business Advancement Potential... Target Price Raised"

Target Price Raised from 36,000 Won to 47,000 Won

On September 18, Shinhan Investment Corp. stated that it is important to pay attention to the potential for Chemtronics to advance its business in the mid- to long-term, and raised its target stock price from 36,000 won to 47,000 won. The investment opinion remains 'Buy'.

Namgoong Hyun, a researcher at Shinhan Investment Corp., explained, "We have raised the target stock price by applying a target price-to-earnings ratio (PER) of 15 times (reflecting the visibility of new businesses) to the 2026 forward earnings per share (EPS) of 3,128 won." He added, "Chemtronics is transforming its business model from an electronic components manufacturer to diversifying into the semiconductor sector. It is necessary to focus on the potential for mid- to long-term business advancement, starting with semiconductor materials and reclaimed wafers."

Shinhan Investment Corp. estimates that Chemtronics will achieve sales of 647.5 billion won this year, up 10% from last year, and an operating profit of 39.5 billion won, up 5%. For next year, sales are expected to increase by 17% to 759.5 billion won, and operating profit is projected to rise by 59% to 62.9 billion won. Researcher Namgoong Hyun stated, "Next year, semiconductor materials are expected to grow by 130%, and displays by 19%, which will demonstrate the company's improved fundamentals driven by performance growth."

With the completion of quality approval for semiconductor materials, mass production supply for both memory and non-memory applications began in the second half of this year. Additionally, the company is preparing glass substrates and interposers through the internalization of the entire Through Glass Via (TGV) process. Namgoong Hyun explained, "The company is enhancing its technological completeness and preparing a pilot line within the fourth quarter of this year," adding, "Mass production supply is anticipated in 2027."

The localization of the semiconductor reclaimed wafer business is expected to accelerate starting next year, and the semiconductor thinning process is anticipated to benefit as material structures shift from silicon to glass.

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