[Click eStock] Juseong Engineering, Strong Performance with Increased Orders This Year... Target Price Up

[Asia Economy Reporter Hwang Yoon-joo] Shinhan Financial Investment maintained a 'Buy' rating on Juseong Engineering on the 28th, citing positive overseas orders in 2022, and raised the target price by 24% from the previous level to 33,500 KRW.

Go Young-min, a researcher at Shinhan Financial Investment, stated, "We expect the company to continue to show differentiated performance compared to competitors in 2022, and maintain it as the top pick in the equipment sector."

Researcher Go explained, "We forecast sales in 2022 to increase by 25% year-on-year to 472.4 billion KRW, and operating profit to rise by 26% to 129.2 billion KRW," adding, "We are revising estimates upward due to the increasing order backlog."

He analyzed, "In the semiconductor sector, along with orders from Greater China customers, the company's market share is expected to continue increasing during the domestic customers' supplementary investment (Migration) process," and "performance differentiation compared to other competitors is possible in 2022 as well."

Researcher Go evaluated, "In the display sector, there was an order announcement of 40.9 billion KRW for LG Display along with last week's earnings disclosure, and depending on future results, an expansion of additional orders in 2022 is expected."

Researcher Go revised down the solar power sector sales for this year to 37.8 billion KRW from the previous 47 billion KRW (2021 order amount). He forecasted, "The customer for this order is a Russian company," and "due to the ongoing war, export sanctions against Russia are expected, which is likely to affect the supply and equipment setup timing."