[Click eStock] "Wonik IPS, Earnings Upward Trend... Top Pick in Semiconductor Equipment"

[Asia Economy Reporter Ji Yeon-jin] Kiwoom Securities announced on the 18th that it maintains a target price of 50,000 KRW for Wonik IPS, stating that the rebound in the memory market and infrastructure investments could increase the company's value, and recommends buying it as the top favorite stock in the semiconductor equipment sector.

Park Yoo-ak, a researcher at Kiwoom Securities, said, "Wonik IPS's stock price has been undergoing a prolonged adjustment period due to the expansion of global economic uncertainties and concerns over reduced investments by clients, approaching historically low valuation levels. In the second quarter of this year, the 'memory market rebound' and 'Samsung Electronics P3 initial investment' will trigger a turnaround in Wonik IPS's stock price, and in the second half, infrastructure investments in 'Samsung Electronics Pyeongtaek 4th phase (P4)' and 'SK Hynix's Yongin cluster' are expected to further strengthen the stock price's upward momentum."

Wonik IPS's sales in the first quarter of this year are expected to reach 248.5 billion KRW, a 44% increase compared to the same period last year, and operating profit is expected to turn positive at 21.4 billion KRW. This is anticipated as sales from SK Hynix's new equipment investments, which were concentrated at the end of last year and the beginning of this year, will be reflected. Additionally, orders for DRAM and NAND equipment for Samsung Electronics Pyeongtaek 3rd phase (P3) are expected to begin in earnest.

Researcher Park said, "Starting from the first quarter, we expect a rising trend in quarterly performance throughout the year," adding, "Sales by business segment are expected to show significant growth in the semiconductor sector, with semiconductor sales at 198.5 billion KRW (+59%) and display sales at 50 billion KRW (+6%)."