[Click eStock] "Techwing, Record 1Q Performance... Positive Factors Continue Through 2023"

[Asia Economy Reporter Kwon Jae-hee] DB Financial Investment maintained its 'Buy' rating on Techwing on the 20th and raised the target price to 32,000 KRW.

In the first quarter of this year, Techwing recorded sales of 66.9 billion KRW and operating profit of 14.2 billion KRW. This represents an increase of 72.2% and 626%, respectively, compared to the same period last year, marking the highest performance ever for a first quarter. Despite the traditional off-season in the first quarter, sales held up due to expanded investment from Micron and new orders from non-memory customers. In particular, operating profit exceeded expectations as the mix improved with growth in high-margin core business sales.

Techwing's performance this year is also expected to reach an all-time high. Sales are projected at 323.7 billion KRW and operating profit at 67.2 billion KRW. The background for this performance outlook includes the normalization of memory handler supply delayed last year, led by Micron, increased SSD handler supply due to SK Hynix's acquisition of Solidigm, and increased non-memory handler sales driven by global foundry investment expansion, all expected to continue through 2023.

DB Financial Investment analyst Eo Gyu-jin stated, "Techwing's medium- to long-term performance outlook is promising as SSD handler orders for SK Hynix and Micron increase and new equipment supply to global OSAT companies grows."