[Click e-Stock] NewPowerPlasma's Standalone Earnings Soar... Consolidated Growth Accelerating

On August 5, Hana Securities analyzed that NewPowerPlasma is continuing its growth in performance, driven by increased demand for core semiconductor·display components and improved results from its subsidiaries.

Han Yugun, a researcher at Hana Securities, stated, "NewPowerPlasma's consolidated sales this year are expected to reach KRW 571.8 billion, a 10.0% increase from the previous year, and operating profit is projected at KRW 41 billion, up 25.8% year-on-year, resulting in an operating margin of 7.2%." He added, "On a separate basis, sales are forecast at KRW 196.7 billion (a 33.8% increase from the previous year), with operating profit of KRW 37.6 billion (35.3% growth), and an operating margin of 19.1%."

NewPowerPlasma is a company that manufactures core plasma-related components used in the front-end processes of semiconductors and displays. Its main products include the RPS (Remote Plasma Source) module, which removes by-products inside chambers, and the RFS (RF Power Supply), a high-frequency power device necessary for plasma generation. Through M&A, it has acquired SpacePro, a composite materials company in the space and defense sector, and Douinsys, a manufacturer of UTG (Ultra-Thin Glass), as subsidiaries. On a consolidated basis, the company operates five business segments: cleaning, RF systems, defense, UTG, and others.

Researcher Han commented, "As semiconductor processes become more advanced and the proportion of cutting-edge processes increases, demand for plasma modules is rising." He explained, "The RPS market is dominated by a few companies, including MKS, Advanced Energy, and NewPowerPlasma. As the No. 1 player in Korea and No. 2 globally, NewPowerPlasma is expected to benefit the most."

He also noted, "The lifespan of RPS and RFS products is only 2 to 3 years, so as the replacement cycle for downstream customers approaches, additional orders are anticipated." He further explained, "The company is simultaneously securing new customers in North America and expanding sales in China."

The consolidated subsidiaries are also showing improved performance. He stated, "SpacePro is expected to achieve stable performance growth due to increased demand for composite materials in the expanding defense market." He added, "Entry into a major North American global drone company is anticipated, which should lead to a higher proportion of overseas sales and improved margins." The book value of SpacePro held by NewPowerPlasma is approximately KRW 55.6 billion, and this year's expected sales in the defense segment are KRW 247 billion (up 10.9% year-on-year).

Douinsys is benefiting from the growth of the foldable smartphone market. He explained, "Douinsys is a primary partner of Samsung Display and possesses core capabilities in the UTG field. The company is diversifying its customer base and growing along with the front-end market." The book value of NewPowerPlasma's stake in Douinsys amounts to about KRW 68.1 billion.

He further analyzed, "Considering the sharp growth of the standalone business driven by increasing demand for semiconductor RPS and new customer acquisition, the completion of restructuring at subsidiary NPM, and the performance growth and equity value of SpacePro and Douinsys, the current share price is undervalued at 7.9 times the 12-month forward EPS."