[Asia Economy Reporter Park Jihwan] Hanwha Investment & Securities maintained a buy rating on Wonik IPS on the 28th, stating that while the semiconductor industry conditions continue to improve, the stock price appears undervalued compared to peer competitors, and raised the target price to 63,000 KRW.
Researcher Lee Soonhak of Hanwha Investment & Securities said, "As the semiconductor industry conditions improve, investments have started to show some vitality," adding, "Since global semiconductor equipment companies are continuously hitting new highs, Wonik IPS is also expected to keep setting new record highs."
Wonik IPS's operating profit is expected to surpass 200 billion KRW this year. Similar to other semiconductor equipment companies, it is analyzed that the benefits from the expansion of customers' facility investments will begin to appear in earnest.
Researcher Lee said, "With DRAM prices starting to rise and the decline in NAND prices narrowing, we anticipate a semiconductor upcycle," and "Along with customers' expanded memory investments, mid- to long-term foundry investments are expected to occur simultaneously."
He emphasized, "The average valuation of overseas semiconductor equipment sectors is a price-to-earnings ratio (PER) of 25 times, which is a reasonable target multiple," and "As the leading domestic semiconductor equipment company, it is expected to surpass a market capitalization of 3 trillion KRW."
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