[Click eStock] "Hanamaterials Expected to See Record Performance Rally...Buy"

On March 5, Daishin Securities initiated coverage on Hanamaterials, expressing expectations for a record-breaking performance rally. The brokerage assigned a "Buy" investment rating and set a target price of 78,000 won.

Hyungkeun Ryu, a researcher at Daishin Securities, stated, "Amid an unprecedented supply shortage in the memory semiconductor sector, facility investments and utilization rates are ramping up across the supply industry. For semiconductor materials and components, the profit growth cycle is projected to continue until the end of 2027." He added, "As business conditions improve, we expect a record performance rally, and short-term results are also likely to exceed market expectations, driven by domestic key clients' demand for restocking silicon component inventories."

With demand expansion set to accelerate, sales of silicon components are expected to rise. Ryu projected, "Sales of silicon components will increase from 241.7 billion won last year to 289.3 billion won in 2026 and 322.3 billion won in 2027." He cited the shortening of replacement cycles due to a higher share of advanced processes and the expansion of client and application bases as the main drivers.

Growth slowed between 2023 and 2025 due to sluggish sales to North American clients, but visibility is improving for order recovery from these clients as part of efforts to stabilize the supply chain. In addition, growth opportunities are being identified in volumes destined for overseas end users.

Ryu added, "The revenue share from logic and foundry clients has hovered around 10% in recent years," noting, "With process miniaturization, opportunities for increased silicon component penetration are expected to steadily open up."

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