[Click eStock] "FST Soars with Samsung Electronics Equity Investment"

[Asia Economy Reporter Ji Yeon-jin] DB Financial Investment has forecasted a positive outlook on FST, a semiconductor pellicle manufacturer, regarding new product development following Samsung Electronics' equity investment.

On the 2nd, FST announced a third-party allotment paid-in capital increase worth 43 billion KRW targeting Samsung Electronics to raise 30 billion KRW for facility funds and 13 billion KRW for operating funds. The purpose of the capital increase is to secure funds for new product development and mass production preparation, as well as to establish a collaborative relationship with the acquiring corporation. Lee Gyu-jin, an analyst at DB Financial Investment, stated, "The company's main customers already include Samsung Electronics (DRAM, NAND, System LSI)," adding, "Samsung Electronics' equity investment is considered a positive factor for the company's ongoing development of EUV pellicles using polysilicon carbide materials."

FST holds a 33.7% stake in Oros Technology, an overlay measurement equipment company for semiconductor masks that was listed on the stock market on the 24th of last month. Oros Technology succeeded in domestic localization of measurement equipment related to lithography during semiconductor front-end processes, a market where there was previously no domestic production, with SK Hynix as its main customer. Following SK Hynix's large-scale EUV equipment investment announcement, expectations for benefits to related measurement equipment have risen, and the current market capitalization is around 450 billion KRW. Accordingly, the value of FST's stake in Oros Technology is approximately 150 billion KRW.

FST's 2021 performance is expected to achieve record-high profitability with sales of 189 billion KRW (+13.7%) and operating profit of 32.2 billion KRW (+30.0%). The analyst explained, "With new investments by Samsung Electronics in Xi'an 2 NAND, Pyeongtaek 2 DRAM, and System LSI, shipments of chillers and pellicles, which are the company's core businesses, are expected to increase. Additionally, improvements in the performance of subsidiaries including Oros Technology are anticipated," adding, "In the mid to long term, there is sufficient momentum from new items such as EUV pellicles, pellicle attachment/detachment equipment, and pellicle inspection equipment."