[Click eStock] "Park Systems, a Company Capable of Valuation Premium"

NH Investment & Securities analyzed on the 7th that Park Systems is one of the few companies within the semiconductor equipment sector that can command a valuation premium. The investment opinion 'Buy' and the target price of 220,000 KRW were maintained.

Park Systems recorded sales of 44.7 billion KRW and an operating profit of 12.7 billion KRW in the second quarter. This represents increases of 13.3% and 26.0%, respectively, compared to the same period last year. Youngho Ryu, a researcher at NH Investment & Securities, said, "The company posted strong earnings that significantly exceeded market expectations," adding, "The better-than-expected results reflected the research equipment order backlog that increased in the first quarter and was reflected in earnings from the second quarter, as well as industrial equipment sales that recorded shipments beyond expectations."

NH Investment & Securities expects Park Systems' sales in the third quarter to reach 4.71 billion KRW, a 48% increase compared to the same period last year. He estimated, "Orders are also expected to maintain a solid performance," and noted, "Although NX-Wafer equipment remains the main product for industrial use, the expanding discussions related to EUV NX-Mask are a positive factor."

He added, "While NX-Hybrid WLI sales are still mostly for testing purposes, as the process advances not only in post-processing but also in miniaturization, the possibility of application in front-end processes is becoming more visible, which bodes well for mid- to long-term growth."

Researcher Ryu advises that Park Systems deserves attention as it improves performance and pioneers markets despite concerns in the semiconductor market. He emphasized, "Ultimately, the market inevitably increases interest in companies that secure mid- to long-term growth by maintaining solid performance and pioneering new markets," and stressed, "Considering the expansion of application scope due to the miniaturization process in semiconductor manufacturing and packaging processes and the company's unique technological capabilities, Park Systems is one of the few companies within the semiconductor equipment sector that can command a valuation premium in the future."