[Click eStock] "Nextin, Undervalued HBM Testing Equipment Company"

KB Securities analyzed on the 30th that Nexthin is undervalued among high-bandwidth memory (HBM) inspection equipment companies. They maintained a 'Buy' investment rating and a target price of 87,000 KRW.

Nexthin is developing HBM inspection equipment together with domestic clients. Juyoung Park, a researcher at KB Securities, stated, "As customer investments in testing and inspection equipment increase to improve HBM yield, Nexthin is expected to benefit," adding, "While the price-to-earnings ratio (PER) for HBM inspection equipment stocks this year is 24 times, Nexthin's PER is 17 times, indicating a lower valuation burden."

KB Securities forecasted that Nexthin's sales and operating profit this year will reach 143.9 billion KRW and 52 billion KRW, respectively, representing increases of 64% and 52% compared to the previous year. He said, "In the first half, the operation of the China joint venture (JV) factory will begin, increasing demand for US equipment replacement due to subsidy benefits," and added, "The new factory of Chinese foundry company SMIC will also start operations, leading to full recognition of sales from the Aegis3 orders."

He continued, "In the second half, domestic orders will increase as domestic clients resume investments and equipment replacement cycles arrive, with initial deliveries expected for new equipment such as Rescue (EUV wafer static electricity removal equipment) and Iris (3D NAND inspection equipment)."