[Click eStock] "PSK, Consider Good Profitability and Dividend Increase... Investment Opinion 'Buy'"

On the 21st, BNK Investment & Securities maintained a 'Buy' rating on PSK, citing solid profitability and the potential for future dividend increases. However, the target price was lowered from 33,000 KRW to 28,000 KRW.

PSK reported third-quarter results with sales increasing by 26% year-on-year to 118 billion KRW, and operating profit rising 14% to 29.1 billion KRW during the same period. Minhee Lee, a researcher at BNK Investment & Securities, explained, "Although the proportion of exports to China, which had driven sales growth, slightly decreased, it was higher than expected. Sales in other regions such as domestic and the U.S. grew evenly. For the high-margin Bevel Etch equipment, steady sales contributions have been maintained due to Chinese customers transitioning to mass production and continuous demand growth from domestic DRAM manufacturers, leading to overall improved profitability."

Lee forecasted that next year's performance would be somewhat stagnant. He stated, "We expect fourth-quarter sales to decline 15% quarter-on-quarter to 100.3 billion KRW, operating profit to be 9 billion KRW due to bonus payments, and an operating profit margin (OPM) of 9%. For next year, while exports to China, which drove growth this year, are likely to decrease due to intensified competition, this will be offset by contributions from new overseas customers and increased domestic demand."

He added, "The current stock price has reached the lowest point in the historical valuation band," and concluded, "Despite the challenging environment, we maintain a 'Buy' rating considering solid profitability and potential future dividend increases."