Shinhan Investment Corp. analyzed on the 13th that Wonik QnC recorded a first-quarter earnings surprise. The investment rating was maintained at 'Buy,' and the target price was raised to 48,000 KRW.
Oh Kang-ho, a researcher at Shinhan Investment Corp., explained, "The rebound was successful due to increased operating rates of major clients in the first quarter and improved performance of subsidiaries," adding, "On a consolidated basis, sales increased by 7% compared to the previous quarter, and operating profit rose by 281%."
He said, "It is positive that the performance recovered to the level of the first quarter of last year, which was the peak during the downward phase in 2023," and noted, "Quartz products are characterized by a replacement cycle of about 3 to 6 months."
He emphasized, "With demand improvement in 2024, the operating rates of major clients continue to increase," and added, "After the core business slump in the fourth quarter of last year, it is judged that the company has entered a phase of accelerated earnings growth in 2024."
Oh also explained that product diversification and subsidiary performance growth are noteworthy momentum. He said, "The diversification of the product portfolio is due to sales growth toward non-memory sectors," and added, "The effect of production capacity expansion is expected, with gradual reflection anticipated from the second half of this year." He further added, "Subsidiaries are also expected to achieve stable growth following last year's performance turnaround."
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