[Click eStock] "Wonik QnC, 2Q Also Records Highest Performance... Operating Profit Approaches 100 Billion KRW"

Operating Profit Expected to Reach 110 Billion KRW Next Year... Breaking the Record High Again

[Asia Economy Reporter Minwoo Lee] As semiconductor companies such as Samsung Electronics and Taiwan's TSMC accelerate their facility investments, Wonik QnC is expected to continue strong performance in the second quarter of this year. It is anticipated to record operating profits in the 100 billion KRW range for the first time since its establishment next year.

On the 2nd, Yuanta Securities maintained its 'Buy' rating on Wonik QnC with this background and raised the target price by 28.6% to 45,000 KRW. The closing price the previous day was 26,350 KRW.

Yuanta Securities raised its operating profit forecast for Wonik QnC this year from 75.6 billion KRW to 87.1 billion KRW. This is due to the improvement in the core quartzware business performance and the faster-than-expected rebound in the performance of its consolidated subsidiary Momentive (MOMQ). Researcher Jaeyoon Lee of Yuanta Securities explained, "As semiconductor companies such as TSMC and Samsung Electronics accelerate their facility investments this year, the demand for consumable process parts is expected to continue at least until the third quarter. Considering that the current quartz and ceramic market conditions are better than before MOMQ's acquisition, the performance rebound is likely to be faster and stronger than expected."

Strong performance is expected immediately in the second quarter as well. Operating profit is forecasted at 23.4 billion KRW, setting a new record high again. This exceeds market consensus by more than 10%. Researcher Lee analyzed, "The benefits from the competition in facility investments among 3D NAND and foundry companies are concentrated on Wonik QnC. Not only domestic Samsung Electronics and SK Hynix but also Taiwan's TSMC expansion is a positive factor."

Next year, it is expected to enter the era of 100 billion KRW operating profit for the first time in history. Consolidated sales are estimated at 672.6 billion KRW and operating profit at 110 billion KRW, which are increases of 12% and 16%, respectively, compared to this year's estimates.

Sales and operating profit of the quartz division (including MOMQ) are estimated to increase by 10% and 20%, respectively, to 574.9 billion KRW and 88.3 billion KRW compared to this year's estimates. MOMQ, which recorded an operating loss of 14.9 billion KRW last year, is expected to record an operating profit of 6.1 billion KRW this year and 11.8 billion KRW next year.

Additionally, the cleaning division is expected to lead changes in the coating processes of its major customers. Researcher Lee forecasted, "If high entry barrier coating processes such as CVD and APS are introduced, Wonik QnC's market share expansion will accelerate."