[Click e-Stock] "Park Systems, Robust New Orders... Target Price Raised"

Target Price Raised from 310,000 Won to 330,000 Won

On May 22, KB Securities raised its target price for Park Systems from 310,000 won to 330,000 won, citing robust new orders. The investment rating was maintained at 'Buy'.

Lee Euijin, an analyst at KB Securities, stated, "We are raising our target price by 6.5% compared to the previous level," adding, "The trend of new orders, particularly from overseas clients, remains strong. We also expect mass production equipment adoption for large-area advanced packaging using TSH equipment."

In the first quarter of this year, Park Systems posted sales of 50.9 billion won, up 98% year-on-year, and operating profit of 13.1 billion won, surging 2,477%, both exceeding the consensus (average securities firm forecasts). Lee analyzed, "The first-quarter earnings surprise was driven by revenue recognition based on the high order value in the second half of last year, rather than by early revenue recognition. In the first quarter, apart from NX-Wafer equipment, sales of TSH and Hybrid-WLI equipment to clients in Taiwan and the United States increased significantly, resulting in a substantial rise in the proportion of sales outside China."

The order backlog for the first quarter reached an all-time high of 89.3 billion won, up 51% year-on-year, while new orders rose 48% to 79 billion won. Lee commented, "Hybrid-WLI equipment has completed testing and is expected to generate new sales in the second half of the year. TSH equipment is currently undergoing mass production testing at client sites, and we anticipate future 'Q (shipment volume) growth' centered on TSH equipment."

KB Securities estimates Park Systems' full-year results at 232.9 billion won in sales, up 33% year-on-year, and 62 billion won in operating profit, up 61%. Lee explained, "In addition to NX-Wafer equipment, the sales proportion of TSH and Hybrid-WLI equipment is expected to increase. As advanced packaging processes become more miniaturized, demand for TSH equipment is expected to remain steady."