SK Materials and Hansol Chemical Rise Over 20% This Month
[Asia Economy Reporter Koo Eun-mo] Recently, while the stock prices of major semiconductor companies such as Samsung Electronics and SK Hynix have been sluggish, semiconductor material-related stocks have continued a stable upward trend. This is interpreted as the stock prices reflecting expectations of improved performance due to accelerated localization and expanded product supply.
According to the Korea Exchange on the 24th, the stock price of Hansol Chemical closed at 154,500 KRW, up 0.32% (500 KRW) from the previous trading day. Since the beginning of this month, Hansol Chemical's stock price has risen 21.7% based on the previous day's closing price, showing high returns despite the sluggish performance of Samsung Electronics (2.5%) and SK Hynix (-3.3%). During the same period, other semiconductor material stocks such as SK Materials (22.0%), ENF Technology (35.4%), and Dongjin Semichem (12.4%) have also maintained a stronger upward trend compared to major stocks.
With uncertainty in server demand in the second half of the year deepening concerns about DRAM price declines, the stock price growth of major companies is limited. Meanwhile, semiconductor material stocks, among the materials, parts, and equipment (SoBuJang) industry, are the first to achieve localization and have increased production facility operating rates, leading to improved performance. Park Sung-soon, a researcher at Cape Investment & Securities, explained, "Customers are increasing investments in new production facilities, so second-quarter performance is expected to grow compared to the previous quarter. Additionally, as the supply of localized products expands, performance growth is likely to continue in the second half of the year."
A representative stock that has seen a positive change in investor response due to material localization is SK Materials, a leading material stock in the KOSDAQ market. Last month, SK Materials announced mass production of hydrogen fluoride, one of the three major Japanese regulatory items along with photoresist and fluorinated polyimide, and is evaluated to have entered a profit cycle from the second quarter.
Lee Jong-wook, a researcher at Samsung Securities, explained, "The profit cycle associated with new NAND flash investments and the operation of the M16 plant, combined with material localization, base effects, and favorable exchange rates, is leading to a revaluation of the stock price." SK Materials, which already announced favorable second-quarter results based on demand for specialty gases and new material sales, is expected to continue growth in the second half of the year based on the performance of existing businesses and new projects such as hydrogen fluoride, high-selectivity phosphoric acid, and photoresist.
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