[Click eStock] "PSK Expected to Outperform Average Revenue Growth... Target Price Raised"

Korea Investment & Securities Raises Target Price by 88%
"Mid- to Long-term Growth Momentum to Continue"

Korea Investment & Securities announced on the 16th that it has raised its target price for PSK to 120,000 won, an 88% increase, while maintaining its top pick rating within the front-end process coverage.

Min Sook Chae, a researcher at Korea Investment & Securities, stated in a report released on this day that the sales estimate for PSK this year has been raised by 14% to 612.9 billion won, and the operating profit estimate has also been raised by 13% to 122 billion won. Chae analyzed, "PSK has been continuously capturing the market share of its largest competitor, Mattson Technology, which is ranked second in PR strip market share, as a result of the U.S.-China trade conflict. By expanding its sales channels through various applications, PSK is also resolving factors that have led to a multiple discount."

Recently, Lam Research mentioned that the wafer fab equipment (WFE) market is expected to grow 22% year-on-year this year. However, Chae forecasts that PSK will achieve even greater sales growth of 36%. She explained, "PSK’s strengths, including a wide range of applications spanning DRAM, NAND, and foundry, and a diversified customer base, are expected to be maximized this year. In the first half of the year, conversion investments by Samsung Electronics and Micron will be the main focus, and this is expected to lead to new fab investments by Samsung Electronics and SK hynix in the second half."

The prolonged memory investment cycle was described as a driver for a 'multiple rerating.' Chae stated, "Unlike in the past, when investment and production adjustments were repeated every two years, the extension of the investment cycle makes multiple rerating possible for PSK. Conversion and new investments are expected to proceed seamlessly at Samsung Electronics’ Pyeongtaek P4 and P5, SK hynix’s M15x and Y1, and Micron’s ID1, ID2, and Hiroshima fab. As PSK has secured all of these companies as clients, its performance will continue to benefit from mid- to long-term growth momentum."

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