[Click eStock] "Park Systems, Q2 Surprise... Target Price '↑'"

Hi Investment & Securities analyzed on the 11th that Park Systems' second-quarter earnings exceeded market expectations and that its performance growth is expected to continue this year. The investment rating was maintained at 'Buy,' and the target stock price was raised to 220,000 KRW.

Park Systems recorded sales of 39.4 billion KRW and an operating profit of 10.1 billion KRW in the second quarter. This represents increases of 139% and 7352%, respectively, compared to the same period last year, surpassing market expectations. Sangwook Park, a researcher at Hi Investment & Securities, said, "Park Systems showed a steep sales growth trend in the second quarter following the first quarter, based on a high order backlog," adding, "It is also encouraging that one EUV mask repair equipment was shipped."

He particularly expected new orders to continue increasing. He stated, "Considering that the order backlog was 73.5 billion KRW in the first quarter and is expected to be around 70 billion KRW in the second quarter, it is estimated that about 40 billion KRW of new orders came in during the second quarter," and added, "Although the pace of new orders has slightly slowed, the demand for measurement equipment in the Greater China region and the expectation of new orders for EUV mask repair equipment remain valid."

Despite the sluggishness in the upstream industry, he expected Park Systems to continue growing this year. Hi Investment & Securities anticipates that Park Systems' third-quarter sales and operating profit will increase by 17% and 21%, respectively, compared to the same period last year, reaching 43.2 billion KRW and 16.3 billion KRW. Furthermore, it is expected that this year the company will record sales of 160.7 billion KRW and an operating profit of 43.8 billion KRW, representing increases of 29% and 34%, respectively, compared to the previous year.

He explained, "Since Park Systems' estimated second-quarter total order amount and order backlog are 38.5 billion KRW and 73 billion KRW, respectively, even if only 20 billion KRW of new orders are received by mid-third quarter, it is expected that our sales estimate of {$_1607억원 can be achieved."