[Click eStock] "PSK Holdings Target Price Raised... Core Equipment Sales Expected to Increase"

Korea Investment & Securities announced on January 27 that it is maintaining its “Buy” investment rating on PSK Holdings and raising its target price by 28% to 88,000 won.

Chae Min-sook, a researcher at Korea Investment & Securities, stated, “With a shortage in supply of ‘Chip on Wafer on Substrate (CoWoS)’-which combines artificial intelligence (AI) chips and high bandwidth memory (HBM)-companies such as TSMC are seeking to increase CoWoS production. PSK Holdings is expected to benefit directly, as it sells its main equipment, such as de-scam and reflow systems, to the CoWoS sector.” She added, “Although the scale of back-end process investment for HBM is inevitably expected to decrease year-on-year as the production capacity for through-silicon via (TSV) processes reaches a certain level, CoWoS investments will make up for this.”

She continued, “In addition, some expansion of production through TSV by client companies is planned for this year, which will serve as an additional driver for earnings growth in the second half of the year.”

Chae noted, “Sales in the fourth quarter of last year were 4.98 billion won, and operating profit was 1.25 billion won, which represents a decrease compared to the third quarter. However, this is unrelated to market conditions and is due to the recognition of delayed equipment sales from the second quarter in the third quarter, which caused a sharp increase in third-quarter results.”

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