BGF Eco Materials is showing strong performance. The stock price appears to be influenced by analysis suggesting that its entry into the semiconductor materials sector will serve as a catalyst for stock revaluation.
As of 9:26 AM on the 14th, BGF Eco Materials is trading at 5,010 KRW, up 4.59% from the previous day.
BGF Eco Materials has decided to invest 150 billion KRW to build an anhydrous hydrofluoric acid manufacturing facility in Ulsan. The facility is targeted for completion in 2026, with an annual production capacity of 50,000 tons, which is about half of the domestic demand. Anhydrous hydrofluoric acid is a key raw material for fluorine-based products used in semiconductors and secondary batteries.
Research Alme stated that BGF Eco Materials is expected to benefit if Samsung Electronics passes Nvidia's high-bandwidth memory (HBM) quality verification, raising the target stock price to 10,000 KRW.
Researcher Choi Seong-hwan from Research Alme explained, "BGF Eco Materials raised 40 billion KRW through a third-party allotment capital increase and is investing in its subsidiary Fluorin Korea to establish the anhydrous hydrofluoric acid manufacturing facility."
He added, "The government aims to reduce overseas dependence to below 50% for key items with high reliance on specific countries by 2030," and "the large-scale investment in anhydrous hydrofluoric acid is expected to alleviate supply chain concerns."
Furthermore, he analyzed, "Anhydrous hydrofluoric acid is used not only to produce fluorine (F2) and sulfur hexafluoride (SF6) gases but also hydrofluoric acid (HF). As cryogenic (Cryo) etching equipment is expected to be introduced in next-generation NAND flash memory, demand for anhydrous hydrofluoric acid will also increase."
He expressed expectations, saying, "The largest customer of the semiconductor specialty gas subsidiary K& W is Samsung Electronics," and "benefits are expected if Nvidia passes quality verification." He also noted, "High-performance memory chips like HBM require extremely fine circuit patterns, so precise and accurate etching processes are essential," adding, "Fluorine is an important material supporting these fine processes." He continued, "AI semiconductors like HBM require high-speed data transmission and processing capabilities, necessitating stable electrical properties," emphasizing, "SF6 is a special material used to improve electrical properties, and demand is expected to expand."
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