[Click eStock] "STI Expected to Benefit from HBM Facility Investments"

Shinhan Investment & Securities analyzed on December 22 that STI is expected to benefit from increased capital expenditures (CapEx) in high-bandwidth memory (HBM) semiconductor facilities. The firm initiated coverage with a "Buy" rating and set a target price of 45,000 won.

Shinhan Investment & Securities projected that STI's revenue and operating profit for next year will reach 462.2 billion won and 54.2 billion won, respectively, representing year-on-year increases of 48% and 209%.

Namgoong Hyun, a researcher at Shinhan Investment & Securities, stated, "Demand for HBM has risen alongside the growth of AI semiconductors," adding, "Memory manufacturers are currently facing a shortage of HBM capacity."

He explained, "By the end of this year, the HBM capacity of Samsung Electronics and SK hynix is expected to exceed 40K per month, respectively," and added, "Next year, capacity expansion is expected to more than double compared to the end of this year."

He further stated, "With the expansion of HBM capacity, we expect an increase in new equipment sales and improved profitability," and projected, "Next year's sales of reflow equipment will reach 33.8 billion won." He added, "Since reflow equipment is more profitable than CCSS equipment, which is STI's main revenue source, overall corporate profitability is also expected to improve."