[Click eStock] “Park Systems, Strong Orders to Reflect in Second Half”

BNK Investment & Securities Report

[Asia Economy Reporter Minji Lee] BNK Investment & Securities maintained a buy rating and a target price of 130,000 KRW for Park Systems on the 22nd, expecting improved performance in the second half of the year.

In the second quarter, Park Systems' sales reached 16.5 billion KRW, a 33% increase compared to the same period last year, but fell significantly short of the market expectation of 24.3 billion KRW. The major factors were logistics difficulties caused by city lockdowns in China and delays in the timing of shipments to India. The proportion of low-profit research atomic force microscopes (AFM) accounted for 40%, leading to a deterioration in the product mix and operating profit of only 130 million KRW.

New orders in the first half of the year reached 90.7 billion KRW, and the backlog was 85.5 billion KRW, marking an all-time high. The flow of new orders is expected to remain strong and is projected to be reflected in the results from the third quarter. The new EUV mask repair equipment, which had four major orders at the beginning of the year, is expected to receive additional orders in the third quarter. For OLED AFM, following two orders from domestic clients at the beginning of the year, new orders from other clients are also anticipated in the third quarter. The AFM order area is expected to expand from semiconductors to displays. Sales in the third quarter are expected to reach 30.1 billion KRW, with operating profit of 8 billion KRW.

Minhee Lee, a researcher at BNK Investment & Securities, analyzed, "Considering the six-month lead time, the strong new orders in the first half are expected to be reflected in the second half's performance," adding, "This year's record-high new orders will lead to a 21% high sales growth next year as well."