[Click eStock] "Nextin, Increasing Demand for Inspection Equipment... Expected Performance Growth Next Year"

On the 17th, KB Securities issued a buy rating and a target price of 75,000 KRW for Nextin.

Juyoung Park, a researcher at KB Securities, stated, "There are two main investment points for Nextin. As semiconductor manufacturers face difficulties securing yields due to process miniaturization, demand for inspection equipment that contributes to yield improvement is increasing," adding, "Nextin is the only domestic company specializing in front-end optical inspection equipment, with dark-field inspection equipment as its main area."

He continued, "Nextin releases new products every two years, narrowing the technology gap with KLA, the global leader in inspection equipment," and said, "We expect Nextin to benefit from the structural growth of the inspection equipment market."

Nextin is expected to deliver solid performance next year. In 2024, the average selling price (ASP) is expected to rise due to the effect of reflecting new equipment sales, and market share expansion is anticipated through the acquisition of new customers. Therefore, 2024 sales are projected to increase by 65% year-on-year to 156.2 billion KRW, and operating profit is expected to grow by 70% to 69 billion KRW.

Researcher Park noted, "Nextin's stock price has fallen 33% from its previous peak due to excessive exposure to China and concerns over delays in customer orders," but added, "However, with customer diversification and securing price competitiveness, the stock price is expected to rebound in 2024."

He further added, "The possibility of new memory customers entering is increasing, and through the establishment of a joint venture (JV) in China, there is a potential to receive up to 50% subsidies for production within China, which is expected to widen the equipment price gap with KLA from the current 40% to up to 70%."