[Asia Economy Reporter Hyunseok Yoo] Surplus Global is showing strong performance. An analysis by securities firms predicting a sharp increase in profits due to rising demand for used semiconductor equipment this year appears to have influenced the stock price.
As of 10:14 AM on the 13th, Surplus Global was trading at 6,500 KRW, up 6.21% (380 KRW) compared to the previous trading day.
NH Investment & Securities forecasted that Surplus Global will see significant performance improvement this year as demand for used semiconductor equipment increases.
They estimated sales of 153.2 billion KRW and operating profit of 23 billion KRW for this year, representing increases of 22% and 49%, respectively, compared to last year.
Do Hyunwoo, a researcher at NH Investment & Securities, explained, "Due to the favorable conditions in the used equipment market, Surplus Global's performance is expected to improve significantly this year. As a specialized company in semiconductor used equipment trading, it operates a platform business that trades thousands of used equipment annually based on a global network."
He added, "This is a business where new entrants find it difficult to enter because it requires large initial equipment purchase costs and the ability to closely understand the equipment needs of each semiconductor company."
Researcher Do also noted, "Demand for used equipment is increasing as the supply shortage of semiconductors using 200㎜ legacy wafers, such as automotive semiconductors, continues. Since most semiconductor equipment manufacturers have stopped producing 200㎜ equipment, purchasing used equipment is the only solution."
He further explained, "The supply shortage of automotive semiconductors is expected to lead to investments in 200㎜ automotive semiconductor production lines led by governments in the U.S., Europe, and Japan, which is also positive for the demand for used equipment."
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