[Special Stock] Sebo EMC, Order Backlog Up 14x... Samsung & Hynix Expansion with Unrivaled High-Tech Equipment

[Asia Economy Reporter Hyungsoo Park] Sebo M&C is showing strong performance. Securities firms' analysis that it is the biggest beneficiary of the semiconductor expansion cycle seems to be influencing the stock price. Sebo M&C is a domestic high-tech facility construction specialist established in 1978.

As of 11:44 AM on the 3rd, Sebo M&C is trading at 11,000 KRW, up 15.18% from the previous day.

Choi Jae-ho, a researcher at Hana Financial Investment, explained, "It is an undervalued phase just before record-high performance due to the semiconductor expansion cycle," adding, "The company focuses on the high-tech facility business supplying piping and ducts mainly to its key clients Samsung

Electronics and SK Hynix semiconductors."

He continued, "Samsung Electronics and SK Hynix have been actively restarting expansion investments since last year to respond to the semiconductor supply shortage after the peak in 2017," emphasizing, "the order backlog at the end of 2021 was a record high of 307.7 billion KRW."

He analyzed, "Based on this year's performance according to the order plan, the price-earnings ratio (PER) is 3.9 times, indicating an absolutely undervalued range," and "we expect record-high performance surpassing the market capitalization of about 190 billion KRW during the 2017 boom."

Researcher Choi explained, "Sebo M&C's order backlog in the first quarter of this year reached a record high of 312.7 billion KRW, an increase of 1353.3% compared to the same period last year," forecasting "an explosive performance growth rally."

He said, "The facility construction project for Samsung Electronics, which accounts for about 30% of sales, is expected to expand throughout the year from P3 to the reinforcement work of P2 in the second half and the foundation work of P4," and "the facility construction for SK Hynix, which accounts for about 28% of sales, is also expanding orders due to increased volume from high-tech construction."

Furthermore, "This year, sales of 650.4 billion KRW and operating profit of 30.1 billion KRW are expected," estimating "an increase of 50.4% and 250.3%, respectively, compared to last year."