[Click eStock] "Jusung Engineering, Expected Performance Differentiation Within Industry"

BNK Investment & Securities forecasted on the 31st that Juseong Engineering will continue to differentiate its performance within the industry. They maintained a 'Buy' investment rating and a target price of 43,000 KRW.

Juseong Engineering reported third-quarter results with sales increasing by 71% year-on-year to 147.2 billion KRW, and operating profit soaring by 744% to 52.2 billion KRW during the same period. Both figures exceeded market expectations by 12% and 22%, respectively. Minhee Lee, a researcher at BNK Investment & Securities, analyzed, "Semiconductor sales were similar to the previous quarter, but the high profitability was mainly due to the majority share of high-margin exports to China again this quarter."

However, Lee projected a slight decrease in operating profit for the fourth quarter. He stated, "The proportion of sales to China is decreasing, and the share of domestic customers, who have started placing orders related to 1bnm (10-nanometer class 5th generation) DRAM expansion since last month, is relatively increasing, which will cause a slight decline in profitability in the fourth quarter."

Lee expects Juseong Engineering to continue differentiating its performance within the industry. He observed, "Since Juseong Engineering specializes in advanced process equipment for premium product lines such as High Bandwidth Memory (HBM) for its clients, it will continue to outperform within the equipment sector. Additionally, there should be visible results for new non-memory equipment around the end of the year."