[Click eStock] "Wonik IPS, Growth Despite Uncertainties"

Overseas Sales Decline Can Be Offset by Domestic Revenue

Semiconductor equipment company Wonik IPS is expected to show an upward trend in performance this year despite uncertainties. Contrary to expectations, the decline in DRAM equipment sales has narrowed, and growth is possible due to expanded NAND facility investment.

On the 27th, Hana Securities maintained its 'Buy' rating and target price of 40,000 KRW for Wonik IPS based on this background. The closing price the previous day was 26,350 KRW.

Hana Securities forecasted that Wonik IPS will achieve sales of 937.7 billion KRW and operating profit of 76.8 billion KRW this year, representing increases of 25.3% and 621.5% respectively compared to the previous year. In particular, semiconductor equipment sales are expected to grow 25% year-on-year to 717 billion KRW, driven by aggressive investment in advanced DRAM processes by domestic memory customers.

For advanced NAND products, customer production capacity expansion is limited, and sales are expected to be centered on migration volumes. Amid this, Wonik IPS is analyzed to secure growth potential by responding to the localization of customer equipment. Through this, it is estimated that the decline in overseas equipment sales can also be offset.

Kim Min-kyung, a researcher at Hana Securities, explained, "This year, memory customers will continue a conservative investment stance focused on conversion investment. Wonik IPS can grow due to the expansion of new equipment supply for advanced processes and the base effect of NAND facility investment, and the current stock price is close to the lower end of the price-to-book ratio (PBR) range, limiting downside risk."