[Click eStock] "Point Engineering, New Semiconductor Business to Become Visible in the Second Half"

[Asia Economy Reporter Hyunseok Yoo] NH Investment & Securities analyzed on the 14th that Point Engineering's new semiconductor business will become visible in the second half of the year. No investment opinion or target price was provided.

Sehoon Son, a researcher at NH Investment & Securities, said, "Point Engineering plans to enter the business of aluminum anodizing coating for semiconductor equipment parts at the request of its clients," adding, "The company's coating technology is based on oxide film formation technology and extends the lifespan of consumable parts by about four times, contributing to cost reduction for semiconductor chip manufacturers."

NH Investment & Securities expects results from the new semiconductor-related business within the third quarter of this year, with related sales appearing in the fourth quarter. He explained, "The new semiconductor equipment parts coating business is expected to receive final approval from clients within the third quarter," and "Sales from the new business are expected to begin from the fourth quarter."

He emphasized, "Annual sales this year are expected to be 62.1 billion KRW, operating profit 12.6 billion KRW, and next year sales 87.1 billion KRW, operating profit 20 billion KRW," adding, "Among these, semiconductor business sales in 2021 are estimated at about 28 billion KRW. While the display business involves both parts production and coating, the semiconductor business only involves coating, so it is expected to be more profitable than the display business."