[Click eStock] "Wonik IPS Expected to Return to Profit in Q1 This Year"

Operating Loss in Q4 Last Year Due to One-Time Expenses
Kiwoom Securities "Maintains Wonik IPS Target Price at 50,000 Won"

[Asia Economy Reporter Gong Byung-sun] Wonik IPS's operating profit and loss for the fourth quarter of last year is expected to turn to a deficit compared to the previous quarter. However, it is predicted to return to profitability starting from the first quarter of this year, supported by new semiconductor orders.

On the 24th, Kiwoom Securities estimated Wonik IPS's fourth-quarter sales of last year to be 202.7 billion KRW, a 46% decrease compared to the previous quarter, and operating loss to have turned to a deficit of 19.6 billion KRW during the same period. The operating loss is twice as large as the market consensus.

All sectors showed sluggish performance. Sales in the semiconductor sector are estimated at 157.2 billion KRW, a 45% decrease compared to the previous quarter, as only the remaining portion of customer investments was paid. Sales in the display sector are also expected to decrease by 47% to 45.5 billion KRW during the same period. Additionally, one-time costs such as year-end bonuses were reflected, leading to short-term operating losses.

However, new semiconductor orders are rapidly increasing. Due to the remaining portion of Samsung Electronics' Gyeonggi Pyeongtaek Plant 2 (P2) and the initial investment in Plant 3 (P3), the backlog of orders in the semiconductor sector is expected to turn upward. Furthermore, investments in the DRAM sector by SK Hynix and in the NAND sector by Samsung Electronics are also expected to have a positive impact.

Park Yoo-ak, a researcher at Kiwoom Securities, explained, “In the case of SK Hynix, DRAM equipment investments of about 30,000 units per month will be executed at the M16 plant, where cleanroom investments are being completed,” and added, “Samsung Electronics will start NAND investments of about 40,000 units at P2 and the Xi’an plant in China.”

Supported by this, Kiwoom Securities forecast Wonik IPS's first-quarter sales this year to increase by 30% compared to the previous quarter to 263.2 billion KRW, and operating profit to turn positive to 34.8 billion KRW during the same period. Among these, semiconductor sector sales in the first quarter are also estimated to increase by 54% compared to the previous quarter, reaching 242.2 billion KRW.

Additionally, Kiwoom Securities maintained its investment opinion of “Buy” and target stock price of 50,000 KRW for Wonik IPS. Researcher Park predicted, “Since the beginning of this year, the growth drivers of increased customer investments and higher order amounts per unit will be reflected in the stock price.” The closing price on the 21st was 38,900 KRW.