[Click eStock] "Park Systems Achieves Strong Results with New Equipment Performance...Differentiated Growth"

On June 4, Kiwoom Securities analyzed that Park Systems is experiencing even stronger growth driven by the performance of its new equipment.

In the first quarter of this year, Park Systems recorded sales of 50.9 billion KRW, representing a 98% increase compared to the same period last year, and operating profit surged by 2,481% to 13.2 billion KRW. Previously, the company’s sales structure was centered on the Greater China region, with an earnings pattern characterized by securing orders early in the year and deliveries in the second half. However, recently, customer expansion to regions outside of Greater China, especially centered on the domestic market, is changing this trend.

Oh Hyunjin, a researcher at Kiwoom Securities, stated, “Recently, customer expansion has been progressing to regions outside of Greater China, especially led by the domestic market. The continued strong performance of new equipment also contributed to the outstanding first-quarter results.”

Based on first-quarter sales, industrial equipment accounted for 72% and research equipment for 24%. By region, Greater China represented 48% and the domestic market 22%. In particular, as the performance of new equipment accelerates, Park Systems’ product portfolio is also becoming more diversified.

Researcher Oh explained, “Among the company’s industrial atomic force microscope products, the NX-Wafer still accounts for the largest share. However, orders for the NX-Mask, NX-Hybrid WLI, and NX-TSH have been steadily increasing recently, especially from major customers.” He added, “In particular, the NX-Hybrid WLI is expanding its application from back-end to front-end processes, while the NX-TSH is expanding from display to semiconductor customers and processes. This demonstrates the diverse market demand for the company’s products.”

According to a market research agency, the AFM (Atomic Force Microscope) market is expected to grow at an average annual rate of 11% through 2030. This is due to increasing demand centered on the semiconductor industry as advanced processing technologies develop. As Park Systems maintains a solid position in the industrial AFM market, it is expected to benefit even more from this trend.

As of the end of the first quarter, the company’s order backlog stood at 89.3 billion KRW, indicating that record-high new orders continue to be secured despite strong results. Researcher Oh assessed, “The increasing order backlog enhances the company’s growth visibility.”

Accordingly, Kiwoom Securities raised its performance outlook for Park Systems this year to sales of 216.8 billion KRW (up 24% year-on-year) and operating profit of 55.7 billion KRW (up 45% year-on-year). The analysis also expects additional profitability improvement driven by top-line growth, as the pace of fixed cost increases slows.

Researcher Oh Hyunjin stated, “Reflecting the upward revision of earnings estimates and the full-scale performance of new equipment, we are raising our investment opinion to ‘Buy’ and our target price to 320,000 KRW.”