[Click eStock] "Jusung Engineering, Strong Performance and Orders... Rebound Trend Expected"

On the 12th, BNK Investment & Securities forecasted a rebound trend for Juseong Engineering based on recent strong performance and order flow. They maintained a 'Buy' rating and a target price of 43,000 KRW.

Juseong Engineering's operating profit for the second quarter of this year recorded 36.1 billion KRW, turning to a profit compared to the same period last year and exceeding market expectations by 31%. Minhee Lee, a researcher at BNK Investment & Securities, analyzed, "The operating profit margin significantly increased to 37.1%. This was because sales to Chinese customers, deferred from the previous quarter, were added, and most of the semiconductor equipment sales consisted of highly profitable Chinese export products," adding, "Also, the weak Korean won against the dollar contributed to improving profitability."

Researcher Lee also expected Juseong Engineering to benefit from the DRAM expansion competition. He noted, "Global DRAM manufacturers have so far focused on expanding high-bandwidth memory (HBM) investments, but now they are showing a trend of concentrating more on investments to increase general server DRAM production, which has relatively higher supply shortage concerns due to HBM expansion," and pointed out, "Chinese DRAM manufacturers are also proceeding with new expansions under national support to establish their own artificial intelligence (AI) ecosystems."

Furthermore, he added, "Good news regarding new products for non-memory and securing new memory customers is expected before the end of the year," and said, "Recently, the stock price has fallen to the historical valuation band's low point, reflecting recession risks. Considering the strong performance and order flow, a rebound trend is now expected."