On the 18th, KB Securities forecasted that semiconductor materials company JI Tech would record better-than-expected earnings due to the recovery in semiconductor demand. JI Tech primarily produces precursors, which are semiconductor thin-film materials, and photomask cases (PMC).
KB Securities estimated JI Tech's sales for the second quarter of this year at 19.4 billion KRW. This figure represents a 144% increase compared to the same period last year, significantly surpassing the market consensus (average forecast). Operating profit is also expected to turn positive at 2.7 billion KRW.
Analysts Han Yu-geon and Sung Hyun-dong of KB Securities stated, "Due to the recovery in semiconductor demand, orders for precursors and PMC are expected to increase sharply," adding, "Annual sales from these two items are projected to reach approximately 65 billion KRW." They also expressed optimism, saying, "High-K, used in cutting-edge semiconductor manufacturing, is expected to see both supply price and volume increase as inventory is depleted, possibly as early as the fourth quarter."
The two analysts noted, "However, the new business segment of liquefied carbon dioxide (CCUS) is unlikely to exceed the expected sales of 4 billion KRW due to supply-demand deterioration and price weakness, despite the start of full-scale commercialization and peak season," adding, "Although its immediate contribution to earnings is limited, expanding supply lines to other semiconductor material companies and increased capital investment by downstream customers are expected to drive long-term growth."
They continued, "JI Tech is expected to achieve sales of 74.6 billion KRW this year, a 72% increase from last year, and operating profit of 10.8 billion KRW, a 161% increase," analyzing that "the current stock price is relatively undervalued at a price-to-earnings ratio (PER) of about 10.9 times compared to other material industry companies."
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