[Click eStock] "Russell, a Year of Outstanding Performance Despite Recession"

Shinhan Investment Corp. forecasted on the 20th that Russell's operating profit is expected to increase by more than 70% this year, predicting it will be a year where performance stands out despite the industry downturn.

Russell is a semiconductor refurbishing (reconditioning, relocation) equipment company. Its main products include deposition equipment (such as CVD). It is characterized by a portfolio of 200mm and 300mm wafers. Its clients are semiconductor companies like SK Hynix and DB HiTek.

Equipment sales have cumulatively reached about 270 refurbished units and over 230 process/equipment modifications. By securing an etching equipment portfolio, it has succeeded in business diversification. In 2020, it entered the logistics robot business by acquiring a 41.2% stake in TMA (now Russell Robotics). This year, the sales ratio is expected to be 72% semiconductor equipment and 28% unmanned transport vehicles.

Byung-Hwa Lee, Senior Research Fellow at Shinhan Investment Corp., analyzed, “Despite concerns over the semiconductor industry slowdown, refurbishing sales growth continues. Major customers’ equipment relocation demand remains steady. Refurbished equipment has a clear cost-saving effect. The chipmakers’ trend of reducing capital expenditure promotes demand for equipment modification.”

Researcher Lee also anticipated, “Overseas export expansion is expected. About 50% of this year’s orders are destined for China. Refurbishing demand within China is on the rise. Amid semiconductor sanctions, demand for used equipment modification and investments in 12nm and above are concentrated. Russell’s refurbished equipment export performance is expected to maintain a steady trend.”

He further projected that Russell will benefit from the growth of the logistics robot market. Lee analyzed, “Russell has supplied over 300 units to major domestic companies such as SK Hynix, Hyundai Motor, and Ottogi. Customer diversification is actively progressing. The AGV control system, which can operate multiple robots simultaneously, is a competitive advantage. It is estimated that about 50 units are operating in domestic semiconductor fabs. Discussions are underway for orders from India’s RELIANCE. Overseas market entry is becoming visible.”

Additionally, he stated, “Russell is expected to record sales of 70.6 billion KRW and operating profit of 7.9 billion KRW this year, representing increases of 68% and 76% respectively compared to the same period last year. Semiconductor equipment demand expansion centered on domestic and Chinese markets will be fully reflected in sales. Unmanned transport vehicles are expected to see profit growth by surpassing the break-even point. Despite the industry downturn, it will be a year where performance stands out.”