[Click eStock] YujinTech, Record High Earnings 'Target Price Up'

[Asia Economy Reporter Lee Seon-ae] Hi Investment & Securities announced on the 8th that it is raising the target price of Yujin Tech by 28.8% to 47,000 KRW due to expectations of improved earnings.

Yujin Tech is expected to achieve record quarterly results with sales of 109.7 billion KRW and operating profit of 30.7 billion KRW in the first quarter of this year.

As various new equipment enter the market in earnest, sales and operating profit this year are estimated to grow by 86% and 322% compared to last year, reaching 371.8 billion KRW and 89.1 billion KRW (expected operating profit margin of 24.0%), respectively. Additionally, starting next year, Yujin Tech is expected to realize sales in the non-memory equipment sector centered on Mini Batch Type ALD, and begin shipments of NAND and non-memory equipment to new large overseas customers, which will further strengthen its future growth potential.

Song Myung-seop, a researcher at Hi Investment & Securities, said, "The target price of 47,000 KRW was derived by applying the highest price-to-book ratio (P/B) multiple of 3.3 times, which was applied in 2013, to this year's expected book value per share (BPS)." He added, "Given that market liquidity is currently at an all-time high and the company's future growth potential is highly highlighted, applying the past peak P/B multiple is not unreasonable. Also, at only 15.5 times this year's expected EPS, it is actually much lower compared to the annual peak P/E multiples the company has received in the past."