[Click eStock] "Wonik QnC, Expecting Improvement in DRAM and Overseas Non-Memory Demand"

On the 11th, BNK Investment & Securities forecasted that Wonik QnC will see demand improvements mainly from DRAM and overseas non-memory customers. The investment opinion was maintained as 'Buy,' and the target price was raised from 34,000 KRW to 38,000 KRW.

Wonik QnC's sales in the fourth quarter of last year increased by 13% year-on-year to 202.5 billion KRW, while operating profit for the same period decreased by 31% to 9.1 billion KRW. Operating profit fell short of market expectations by 30%. Minhee Lee, a researcher at BNK Investment & Securities, analyzed, "Sales recovered due to demand improvement, but profitability worsened due to a one-time cost of 4 billion KRW for the new factory relocation and losses in the cleaning, ceramic, and lamp business sectors."

The researcher forecasted performance improvement this year. He explained, "In the first quarter, performance is expected to improve due to the recovery of operating rates of memory customers and increased orders from overseas etching equipment customers. From the second quarter, additional performance improvements are expected as sales from the Taiwan factory completed at the end of last year and price increases by the subsidiary Momentive are reflected."

Meanwhile, the researcher anticipated demand improvements this year mainly from DRAM and non-memory customers. He said, "DRAM from memory customers is expected to reach normal operating rates in the second half of the year, but NAND demand remains weak. This year, performance improvement is expected mainly from overseas non-memory customer demand and DRAM." He added, "Although general IT demand excluding artificial intelligence (AI) remains uncertain, the performance bottom appears to have passed."