[Click eStock] "HPSP, Strong Orders Despite Weak Industry Conditions... Continued High Growth"

[Asia Economy Reporter Lee Jung-yoon] FS Research evaluated on the 28th that despite sluggish market conditions, HPSP's new orders are favorable, and they expect solid performance through the second half of this year.

HPSP, established in 2017, is a specialized company in high-pressure heat treatment equipment, developing and producing equipment that improves semiconductor performance using high-pressure hydrogen. Since the need for HPSP's equipment increases below 16 nanometers, it is understood that new orders remain favorable despite the sluggish market due to semiconductor companies' investments in miniaturization.

Hwang Se-hwan, a researcher at FS Research, explained, "Until this year, HPSP's annual production capacity is 40 units, and it is estimated that they have already received orders sufficient to fill the production capacity (CAPA) until the first half of next year. Considering that about 70% of the sales in the third quarter are settled in dollars from pre-ordered volumes, profitability is also expected to be favorable due to exchange rate effects. The third-quarter performance is estimated at 40 billion KRW in sales and 20 billion KRW in operating profit."

Furthermore, HPSP's sales this year are expected to grow by 63.4%, and operating profit by 72.6%. Researcher Hwang said, "Considering the sluggish market conditions, this represents tremendous growth for a semiconductor equipment company. The reason such performance is possible is that sales are increasing not only from the main customers in the non-memory sector but also from the memory sector, which is just beginning."

He added, "As equipment demand expands due to process miniaturization investments and market conditions improve, benefits are expected from new line investments. This trend aligns with plans to double production capacity by the end of next year, setting up an annual scale that is promising in the mid to long term."