[Click e-Stock] "YujinTech, Steady Equipment Development Leads to Stable Sales Growth... Target Price '↑'"

Hi Investment & Securities analyzed on the 7th that Yujin Tech continues to show stable sales growth. The investment rating was maintained at 'Buy,' and the target price was slightly raised from 38,000 KRW to 40,000 KRW.

Hi Investment & Securities forecasted that Yujin Tech will record sales of 79.9 billion KRW and an operating profit of 8.5 billion KRW in the second quarter. Song Myung-seop, a researcher at Hi Investment & Securities, stated, "Sales are expected to slightly increase compared to the previous quarter, while operating profit is expected to slightly decrease," adding, "In the third quarter, with SK Hynix's investments continuing to be sluggish and Samsung Electronics' investments also expected to go through a pause period, earnings are likely to shrink significantly."

However, improvement in performance is expected from the fourth quarter. He emphasized, "With the resumption of Samsung Electronics' DRAM investments, the company's performance is expected to recover to the levels seen in the first and second quarters of this year."

Along with this, Yujin Tech's steady equipment development is also expected to contribute to performance improvement. He explained, "Next year, the adoption of metal ALD for DRAM 1B and 1C nanoprocesses and the shipment of mini batch type ALD for non-memory are expected to begin," adding, "This is because the testing and certification processes for the company's new equipment by customers appear to be progressing without major issues." He further added, "Yujin Tech is also judged to be achieving meaningful results in the development of next-generation 3D DRAM-related equipment."

In particular, Researcher Song predicted that Yujin Tech's stock price will follow those of its customers, Samsung Electronics and SK Hynix. He emphasized, "The stock price is expected to trace the same trajectory as those of Yujin Tech's customers, Samsung Electronics and SK Hynix," adding, "The rise in customer stock prices implies a recovery in the semiconductor industry outlook, increased investments by customers, and an improvement in the company's performance."