[Click eStock] "HPSP, Stock Price Expected to Rebound After Year-End... Target Price Down"

On the 16th, BNK Investment & Securities anticipated a gradual stock price rebound for HPSP after the end of this year. The investment opinion of 'Buy' was maintained, but the target price was lowered from the previous 58,000 KRW to 42,000 KRW.

HPSP recorded sales of 27.3 billion KRW and operating profit of 12.1 billion KRW in the second quarter of this year. These figures represent decreases of 43% and 55% respectively compared to the same period last year, falling short of market expectations by 12% and 20%. Minhee Lee, a researcher at BNK Investment & Securities, analyzed, "Considering that the sales of one piece of equipment were deferred to the next quarter, the sales are at the expected level," adding, "Costs increased compared to the previous quarter due to higher depreciation expenses following the relocation to the new headquarters, as well as rises in research and development expenses and labor costs."

Regarding the performance outlook for the second half of the year, the researcher stated, "Memory orders from the first half will be reflected in sales, with sales expected to increase to 46.7 billion KRW in the third quarter and 61.6 billion KRW in the fourth quarter," noting, "These will be the highest quarterly sales."

Additionally, the researcher explained, "The recent stock price has rebounded after falling to the lowest valuation level since listing," attributing this to "concerns over a slowdown in orders in the second half due to uncertainty in final demand." He added, "However, many positive factors such as orders for the new US foundry plant and test results of the HPO (High Pressure Oxidation) new equipment after the end of the year are expected to lead to a gradual stock price rebound."