[Click eStock] "Mirae Bandochae, Front-end Demand Recovery Expected Next Year"

Shinhan Investment Corp. on the 13th stated that although short-term market uncertainties have increased for Mirae Semiconductor, it is expected that front-end demand will gradually recover by 2025. However, no target price was provided.

Senior Researcher Kim Hyung-tae said in a report released that day, "Sales in 2024 are expected to grow 26% year-on-year to 479.9 billion KRW, and operating profit is expected to increase by 27% to 12 billion KRW during the same period," adding, "The company is attempting to diversify its business areas such as artificial intelligence (AI), automotive, 5G, and IoT through establishing sales channels including foundry and design houses."

He viewed that a reduction in Samsung Electronics' memory market share would inevitably have a negative impact. Accordingly, sales next year are expected to grow in the single digits. Researcher Kim said, "Concerns over a decline in memory average selling price (ASP) act as a factor limiting a short-term rebound, but the stock price is judged to have already reflected this," and forecasted, "From a conservative market outlook, sales in 2025 are expected to grow in the low single digits to 485.7 billion KRW."

However, he pointed out that while servers are recognized as a major growth driver in the semiconductor market, the benefit area is somewhat limited to general servers due to the HBM direct supply structure of memory manufacturers, which is a somewhat disappointing aspect.

The closing price of Mirae Semiconductor on the 12th was 11,290 KRW. Researcher Kim mentioned there is a possibility of upward revision in the future.

He said, "The stock price is positioned near the previous low with a 12-month forward price-to-earnings ratio (PER) of 19.3 times," and added, "Depending on the pace of demand recovery and the increase in the proportion of high value-added products, the conservative growth rate and profitability outlook could be revised upward in the future."