Tesna Expected to Deliver Strong Performance This Year Due to Expansion Effects

[Asia Economy Reporter Hyunseok Yoo] Tesna is expected to record strong performance this year as the effects of capacity expansion are reflected.

On the 23rd, according to the financial investment industry, Hyundai Motor Securities raised Tesna's target stock price to 66,000 KRW.

The reason for the upgrade is improved earnings. Hyundai Motor Securities forecast that Tesna's sales and operating profit in the fourth quarter of last year would reach 64 billion KRW and 19.1 billion KRW, respectively, representing increases of 64.6% and 99.0% compared to the same period the previous year.

Researcher Chanho Park of Hyundai Motor Securities said, "The CIS test division operated at an 80% utilization rate, and AP and RF tests also maintained a 70% utilization rate following the third quarter," adding, "Equipment that began operating from the third quarter started to be fully reflected, and quarterly growth in performance is expected."

In particular, sales and operating profit this year are expected to reach 280.6 billion KRW and 80.3 billion KRW, respectively. He explained, "Along with the demand for CIS and AP tests from major clients and rising utilization rates, the effects of capacity expansion in the CIS, AP, and RF business units will be reflected in the performance."

He continued, "Equipment related to investments worth 60 billion KRW for CIS, 22 billion KRW for RF, and 40 billion KRW for AP, which were decided last year, will complete setup within the first quarter, and related performance is expected to start being reflected from the second quarter," emphasizing, "This year is also expected to see growth in the second half compared to the first half, similar to last year."