[Market Focus] ENF Technology Undervalued with PER Below 10... Target Price Set at 54,000 Won

ENF Technology is on an upward trend. This appears to be influenced by securities firms' analysis that the company is undervalued, with a price-to-earnings ratio (PER) of less than 10.

As of 9:52 a.m. on July 21, ENF Technology was trading at 38,350 won, up 750 won (1.99%) from the previous trading day.

Joo Minwoo, a researcher at NH Investment & Securities, stated, "While many semiconductor materials and components companies are being assigned a PER of over 10 based on 2025 projections, ENF Technology is trading at around 7.8. This indicates that a valuation rerating is necessary."

Researcher Joo emphasized, "Due to improvements in the product mix, the semiconductor segment is expected to account for 65% of ENF Technology's sales in 2025, and the company is now recognized as a full-fledged semiconductor materials provider. This is because it has achieved structural improvement by restoring its operating margin to the mid-10% range starting in 2025 through reductions in raw material costs."

NH Investment & Securities forecasts that ENF Technology's sales and operating profit this year will reach 652.3 billion won and 93.1 billion won, respectively. This represents increases of 12% and 57% compared to the same period last year. He added, "ENF Technology supplies general-purpose materials, and the proportions of DRAM and NAND, as well as the customer base, are well balanced. This allows the company to benefit in any cycle where growth in either area stands out. In 2025, the DRAM market is expected to remain strong, with continued growth led by leading companies."