[Special Stock] Komico's Performance Surpasses Industry Conditions... "Undervaluation Highlighted"

Komico is on the rise. Despite concerns about the industry outlook, its growth continues, and securities firms' analysis that the stock is undervalued appears to have had an impact.

As of 2:19 PM on the 6th, Komico was trading at 41,300 KRW, up 4,350 KRW (11.77%) from the previous trading day.

Komico operates cleaning and coating businesses that refurbish high-priced semiconductor process equipment parts, as well as a semiconductor ceramic parts business (Mico Ceramics). The cleaning and coating business plays a key role in controlling particles and defect areas during the process, contributing to yield improvement.

Lee Dong-joo, a researcher at SK Securities, said, "Among the overseas subsidiaries related to cleaning and coating, the growth of Wuxi stands out," adding, "Following investments by Chinese memory companies, ramp-up, expansion of the aftermarket share due to equipment import sanctions, and competitive advantages in the local market indicate that a favorable business environment continues." He further noted, "Considering the strengthening of U.S. sanctions, it is highly likely that Wuxi subsidiary’s performance growth will continue."

He emphasized, "The headquarters in Anseong also continued external growth through an increase in the proportion of advanced processes despite the overall sluggish operation rates of domestic customers," and added, "Production efficiency improvements from automation investments have secured a double-digit profitability base."

SK Securities expects Komico’s sales and operating profit this year to reach 550.8 billion KRW and 132.2 billion KRW, respectively, representing increases of 8% and 18% compared to the previous year. He said, "The price-to-earnings ratio (PER) this year is only 3.8 times," adding, "Of course, the subsidiary Mico Ceramics accounts for a large portion of earnings, and the parent company’s value is discounted due to the possibility of its listing."

He stressed, "Even excluding Mico Ceramics, the core business has a profit capacity based on more than 30 billion KRW, which can explain most of the current market capitalization," and added, "Considering a 60% discount on the value of Mico Ceramics’ shares, it is still around 200 billion KRW, highlighting its attractiveness as a low-priced stock."