[Click e-Stock] "Hansung Clean Tech Secures Record Order Backlog... Benefits from Large-Scale Samsung and SK hynix Investments Accelerate"

On May 20, independent research firm ValueFinder assessed that Hansung Clean Tech is securing mid- to long-term growth momentum as it begins to benefit in earnest from the large-scale investment expansions by Samsung Electronics and SK hynix. The firm highlighted that Hansung Clean Tech has reached its highest-ever order backlog, particularly due to consecutive orders from both companies related to ultrapure water and wastewater treatment.

Since the beginning of this year, Hansung Clean Tech has consecutively secured projects related to the Samsung Electronics Pyeongtaek Campus. In January, the company won the contract for the wastewater treatment project at Samsung Electronics P4 Phase 2 Green Building. This was followed by the P5 Phase 1 Green Building wastewater treatment project in February, and in March, the P4 Phase 2 ultrapure water complex building contract.

Moreover, on May 18, Hansung Clean Tech further expanded its order pipeline by securing an additional 14.1 billion won contract for the expansion of the Samsung P5 Phase 1 project and a 15.5 billion won contract for the DB HiTek ultrapure water expansion project. As of the end of the first quarter of this year, the progress rate for the Samsung P4 Phase 4 ultrapure water construction project, which was awarded last year, stood at 54.7%. The newly secured projects for this year are still in their initial stages, so revenue recognition is expected to begin in earnest from the second half of the year.

Orders related to SK hynix are also on the rise. Hansung Clean Tech, which won the contract last year for the installation of machinery for the wastewater treatment system at the Yongin Semiconductor Cluster Y1 Phase 1, received a second purchase order worth 11.9 billion won in February this year and is currently carrying out the project. As a result, the company's earnings growth visibility for this year has further increased.

There is also significant potential for additional orders in the future, according to analysts. Additional wastewater treatment volumes for Yongin Cluster Phase 1, Phase 2 are scheduled between 2027 and 2029, and the volumes for the Yongin Phase 2 project are also in the pipeline as potential future orders.

Hansung Clean Tech is also receiving positive evaluations for its technological competitiveness. In April, the company was selected for a national project initiated by the government titled "Next-Generation Ultrapure Water Production Process Design, Operation, and Long-Distance Ultrapure Water Supply Technology Development." Through this project, the company will be responsible for designing an energy-saving, eco-friendly ultrapure water production plant, and its technological capability for localized ultrapure water production has been officially recognized.

The company’s performance is being driven by its environmental facilities EPC (Engineering, Procurement, and Construction) division. In the first quarter of this year, consolidated sales reached 44.9 billion won, with the environmental facilities EPC division accounting for 28.4 billion won, or 63.4% of the total. While profitability is currently affected by the early stages of these projects, analysts expect a turnaround in performance from the second half of this year as revenue recognition from the Samsung Electronics P4 and SK hynix Y1 projects accelerates.

ValueFinder believes that, considering future investments such as Samsung Electronics' P6 investment, cooperative foundry new fabs, and the Samsung Yongin Mega Cluster, Hansung Clean Tech has secured a long-term order pipeline expected to last for the next five to ten years or more.

Woo Bin Jeon, a researcher at ValueFinder, stated, "This year is particularly significant as it marks the first year in which the large-scale expansion cycles of Samsung Electronics and SK hynix are beginning to translate into actual performance. With the company having secured its largest-ever order backlog and next-generation projects such as Samsung P6 and the Yongin Mega Cluster in the pipeline, long-term growth visibility is higher than ever before."

He added, "Being selected for the national project on ultrapure water localization is not just about expanding orders, but is a formal recognition of our technological competitiveness. In addition to our major existing clients, there is also potential for expanding our new client base."

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