[Click eStock] PSK, Earnings Estimates Raised and Target Price Upward Revised

[Asia Economy Reporter Lee Seon-ae] DB Financial Investment announced on the 17th that it maintains a buy rating on PSK and raises the target price to 65,000 KRW.

Oh Gyu-jin, a researcher at DB Financial Investment, explained, "Despite short-term concerns about reduced domestic memory investment, Logic-related sales are increasing and new equipment is being introduced, so mid- to long-term performance is expected to continue improving. Nevertheless, the company's current stock valuation is at a low level of 7.7 times (2022), so we recommend buying."

PSK's Q4 2021 results showed sales of 122.4 billion KRW (+65.8% YoY / +21.4% QoQ) and operating profit of 18.8 billion KRW (+994% YoY / -21.2% QoQ / OPM 15.3%), achieving solid results even in the off-season. Despite the completion of large-scale equipment deliveries to Samsung Electronics in the first half, orders for memory and Logic semiconductor equipment from major overseas customers such as SK Hynix M16, Greater China, the US, and Taiwan steadily increased, resulting in sales exceeding expectations. However, profitability was somewhat weak due to one-time costs related to year-end incentive payments.

This year, supply of Logic equipment to major US customers is expected to increase significantly, along with increased market share of Logic equipment for domestic companies and growing orders for PR Strip equipment from global companies in Greater China and Taiwan. Additionally, expansion of domestic customers for existing Dry Cleaning equipment and full-scale orders for new Edge Clean equipment are anticipated.

Researcher Oh forecasted, "With strong memory sales and an increasing proportion of non-memory sales, PSK's annual performance in 2022 is expected to set a new record with sales of 490.3 billion KRW (+10.6%) and operating profit of 117.4 billion KRW (+18.4%)."