[Click eStock] "HPSP, Earnings Decline Inevitable but Bottoming Out... Target Price Down"

DS Investment & Securities evaluated on the 3rd that although a decline in earnings is inevitable in the second-quarter earnings estimate for HPSP, the company is bottoming out. The investment opinion 'Buy' was maintained, and the target price was lowered from the previous 58,000 KRW to 52,000 KRW.

Researcher Lee Surim of DS Investment & Securities stated, "Second-quarter sales are expected to decrease by 38% year-on-year to 29.5 billion KRW, and operating profit for the same period is forecasted to decline by 47% to 14.1 billion KRW," adding, "The impact of reduced capital expenditures (CAPEX) by major logic semiconductor companies remains, and poor performance is expected to continue through the second quarter."

She continued, "Due to the decrease in sales and the reflection of depreciation expenses, the margin rate is also expected to decrease by 5 percentage points compared to the previous quarter," but added, "However, a clear recovery trend in performance is anticipated from the second half of the year, and in 2025, overall advanced process investment recovery along with an increase in equipment volume for North American clients is expected to drive a 37% growth in sales." Furthermore, she added, "Long-term benefits are expected from the recent investment increase plans of the world's leading foundry company in 2nm (nanometer; 1nm = one billionth of a meter) technology."