Shinhan Investment Corp. analyzed on the 7th that Wonik QnC is expected to improve its performance due to the recovery of the semiconductor cycle. The investment opinion was maintained as 'Buy,' and the target price was raised to 43,000 KRW.
Researcher Oh Kang-ho of Shinhan Investment Corp. stated, "We maintain the view of a low first half and a strong second half in performance through the semiconductor cycle recovery in 2024, and a high first half and a low second half in stock price," adding, "With the improvement in IT demand, an increase in customer operating rates and diversification of products from memory to non-memory as well as expansion of the customer portfolio are expected to be in full swing."
He explained, "In the case of the main product, quartz, an increase in operating rates of major customers is expected due to demand improvement this year," and forecasted, "Quartz sales this year will be 267.9 billion KRW, an 18% increase compared to the previous year."
He added, "The subsidiary Momentive has been experiencing steady growth since the performance turnaround in 2021," and noted, "The recovery of the semiconductor industry cycle and diversification of demand sources are also positive."
He said, "Looking at past cases, the rally in parts stocks during the cycle recovery and expansion of facility investment is also a point to look forward to," and predicted, "With the expected recovery in semiconductor demand in 2024, consolidated operating profit will increase by 27% year-on-year to 106.1 billion KRW."
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