[Featured Stock] Russell Rises on Analysis as Biggest Beneficiary Among Small and Mid-Caps in Foundry and Robot Automation

[Asia Economy Reporter Hyunseok Yoo] Russell is showing strong performance. The stock price appears to be influenced by expectations that the supply of related equipment will increase due to the favorable foundry market conditions. The stock price of Surplus Global, a semiconductor refurbishing (resale) company, surged to the price limit.

As of 10 a.m. on the 26th, Russell was trading at 5,690 KRW, up 19.04% (910 KRW) compared to the previous trading day.

Daishin Securities forecast that Russell will record consolidated sales of 79.3 billion KRW and operating profit of 15 billion KRW this year, representing increases of 116.6% and 131.5%, respectively, compared to the previous year.

Russell is a semiconductor used equipment company specializing in thin film deposition equipment. Daishin Securities analyst Han Kyung-rae said, "Due to U.S. sanctions on Chinese semiconductor companies, demand for 8-inch foundries is surging," adding, "8-inch equipment is traded in the used market, and the shortage of used equipment supply benefits Russell."

He emphasized that the order announcement on the 18th is not the end. He said, "There was an order announcement on the 18th for 6.6 billion KRW worth of equipment for Ki Foundry (MagnaChip)," and added, "Equipment orders began after SK Hynix's acquisition of Ki Foundry's shares." He continued, "Due to the favorable foundry market conditions, investment is accelerating compared to the previously expected schedule," and explained, "Additional orders beyond the announced contracts are ongoing."

He also stressed the importance of paying attention to the growth of Russell Robotics, a subsidiary. Russell Robotics is a company specializing in unmanned robot automation systems. He said, "It can be said that it is dominant in the domestic smart factory unmanned guided vehicle (AGV) market," adding, "Its strength lies in proficiently handling multiple global software and performing stably in various industries based on a large database."

Daishin Securities expects Russell Robotics' sales to increase by 240% to 19.3 billion KRW this year compared to the previous year. He emphasized, "Currently, companies related to robot automation are receiving high valuations in the market," and added, "Considering Russell Robotics' expected sales of 32 billion KRW and operating profit of over 6 billion KRW next year, Russell's current market capitalization level (about 120 billion KRW) is justified by the value of Russell Robotics alone."