[Click eStock] "Unisem, Clear Earnings Improvement... Better Next Year"

[Asia Economy Reporter Park Jihwan] Hana Financial Investment forecasted on the 1st that Unisem, which has recently shown a clear improvement in performance, is expected to open the era of the first-ever 300 billion KRW sales next year.

Unisem's estimated annual sales for 2021 are 293.8 billion KRW, expected to increase by 37% compared to the previous year. Kim Kyungmin, a researcher at Hana Financial Investment, stated, "Similar to 2020, sales followed a pattern of high in the first half and low in the second half, but the growth rate compared to the same period last year is remarkable," adding, "The most recently announced third-quarter sales were 69.1 billion KRW, a 51% increase compared to the same period last year." The estimated annual sales of 293.8 billion KRW for 2021 represent a 37% increase from 215.1 billion KRW in 2020. Researcher Kim said, "The market share in the domestic non-memory foundry semiconductor equipment sector has increased, and due to the strengthening of ESG activities by domestic semiconductor clients, the application of scrubbers has expanded."

Next year, sales are expected to reach 329.1 billion KRW, surpassing 300 billion KRW on an annual basis for the first time in history. This is due to an increase in semiconductor equipment orders per wafer unit investment and the emphasis by many clients on strengthening ESG activities, which will further expand the application of scrubbers. Researcher Kim stated, "Unisem has a track record of supplying non-combustion type scrubbers to display clients, so whether clients adopt high-efficiency combustion type or non-combustion type scrubbers that better align with ESG concepts, it is expected to respond well to rapidly changing demand."

In particular, what should be additionally noted among Unisem's sales is the equipment sales for non-memory semiconductors. The scale of non-memory foundry investment in Korea has increased compared to the past, and Unisem has succeeded in partially replacing some processes, gradually reducing its dependence on memory equipment investment. Exposure to non-memory equipment investment is increasing. The contribution of non-memory semiconductor equipment sales is estimated to be in the high teens percentage-wise for 2021 and is expected to exceed 20% in 2022.

Researcher Kim Kyungmin concluded, "In summary, the sales structure that depended on memory semiconductor equipment investment is benefiting from the strengthening of ESG activities in the upstream industry and non-memory equipment investment, and it is expected to have a positive impact on the stock price next year as well."