[Click eStock] "Park Systems, Notable Increase in Orders... New Target Price Set at 220,000"

Global No.1 Industrial Atomic Force Microscope Company
2024 Annual Performance Expected to Show 'Strong Start, Weak Finish'
Order Growth Trend Over Past 2 Years... Highest Record Expected This Year

Daishin Securities highlighted the order performance of Park Systems on the 2nd, issuing a new 'Buy' rating and a target price of 220,000 KRW. Park Systems' closing price on the previous trading day was 167,700 KRW.

Researcher Shin Seok-hwan of Daishin Securities stated, "The target price reflects the average price-to-earnings ratio (PER) from 2022 to 2023, when the order backlog for atomic force microscopes sharply increased," adding, "As of the end of 2023, the order backlog held was 51.9 billion KRW." Park Systems is the global number one company in industrial AFM (atomic force microscopes). As the introduction of extreme ultraviolet (EUV) equipment increases, AFM orders also rise accordingly.

For the first quarter of 2024, sales are projected at 28.7 billion KRW, with an operating profit of 4.3 billion KRW. The year-end order backlog of 51.9 billion KRW is expected to be recognized over the first and second quarters, and new orders for high value-added products in the first quarter are anticipated to be reflected in the second half of 2024. The annual performance for 2024 is expected to follow a pattern of lower sales in the first half and higher in the second half. The 2024 performance forecast is sales of 176.4 billion KRW and operating profit of 42.3 billion KRW.

Researcher Shin said, "Orders for NX-MASK repair equipment have begun to occur partially, maintaining growth momentum," and added, "Since most of the capital expenditures (CAPEX) by global chip makers this year are focused on high-bandwidth memory (HBM) and advanced processes, orders for high value-added products such as NX-Mask and NXHybrid WLI equipment are expected to increase." By country, sales proportions as of 2023 were 43% in Greater China, 19% in Europe, 11% in the United States, and 14% domestically. Recently, new product orders have been steadily occurring from customers in Greater China and North America.