[Click eStock] SFA, Semiconductor and 2nd Battery Orders Increase, 'Buy Maintained'

[Asia Economy Reporter Lee Seon-ae] DS Investment & Securities stated on the 18th that it maintains a 'Buy' rating and a target price of 55,000 KRW for SFAC, as the increase in new orders for semiconductors and secondary batteries is expected to expand this year.

New orders for displays this year are expected to decrease compared to the previous year, but new orders for semiconductors and secondary batteries are anticipated to increase by more than 250% and 40%, respectively, compared to last year.

The semiconductor business is steadily expanding its market share in the wafer handling equipment (OHT) market, where it holds a high external market share. New orders for semiconductors are expected to increase from 48.5 billion KRW last year to about 160 billion KRW this year. The secondary battery sector will continue to benefit from the ripple effect due to the expansion of the upstream market. Last year, it recorded sales of 163.1 billion KRW (+109% YoY) and new orders of 166.4 billion KRW. New orders are expected to increase due to logistics automation orders for domestic customers and the expansion of non-destructive (3DCT) inspection equipment volume.

The display sector is at a stage where investment expectations are being reflected. Kwon Tae-woo, a researcher at DS Investment & Securities, stated, "With the expected resumption of small and large OLED investments for domestic customers this year, an expansion of orders for the main business, display solutions, is anticipated."