[Click e-Stock] "HPSP Expected to Diversify Business into Back-End Processes... Target Price Raised"

On September 30, NH Investment & Securities analyzed that HPSP, which had previously specialized in front-end processes, is expected to diversify its business areas into back-end processes. The firm maintained its 'Buy' investment rating and raised its target price to 40,000 won.

Ryu Youngho, a researcher at NH Investment & Securities, stated, "This year, global front-end process companies experienced a decline in stock prices due to increased macroeconomic uncertainty." He added, "In 2026, major foundry companies, especially those in the United States, are expected to expand their investments in advanced processes."

He continued, "In addition to the leading company TSMC, Samsung Electronics has also decided to invest in foundry operations along with securing new orders. Recently, there is a growing possibility that Intel, which had been a source of concern, will resume its investments as well."

He explained, "On September 26, HPSP announced its plan to appoint a new Chief Executive Officer (CEO) through a public disclosure. Appointing a CEO with expertise in back-end processes indicates the company's intention to expand its business areas into back-end processes in the future."

NH Investment & Securities projected that HPSP's revenue and operating profit for this year will be 39.3 billion won and 21.1 billion won, respectively, representing decreases of 21% and 19.4% compared to the same period last year. He emphasized, "The weaker performance compared to the previous quarter was due to some equipment sales being recognized early in the second quarter. However, we expect fourth-quarter results to recover to normal levels, so annual performance is projected to remain unchanged from previous estimates."

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