[Market Feature] KNJ Enters Full-Fledged Uptrend... Remains Undervalued Despite Short-Term Surge

KNJ is showing strong performance. It appears that a recent securities firm analysis report, which stated that the company remains undervalued with a price-to-earnings ratio (PER) of 9 despite a recent short-term rally, is having an impact. Korea Investment & Securities commented that KNJ's valuation is even more attractive considering that the valuation of its industry peers has risen to as high as 20 times earnings.

As of 9:31 a.m. on September 25, KNJ was trading at 29,000 won, up 9.02% from the previous day.

KNJ is a manufacturer of consumable semiconductor parts, with a primary focus on producing CVD-SiC (Chemical Vapor Deposition Silicon Carbide) focus rings. Focus rings are consumable parts in the form of a ring that surrounds the edge of a wafer during the etching process. They serve to secure and protect the wafer while ensuring uniform plasma distribution, thereby improving process yield.

Cho Suhyeon, a researcher at Korea Investment & Securities, stated, "KNJ is the only SiC focus ring manufacturer that independently produces and operates CVD chambers," adding, "Compared to competitors who rely heavily on foreign equipment, KNJ has advantages in quality, lead time, and cost."

He further explained, "Focus rings are consumable parts, and equipment operation is suspended during replacement. Naturally, semiconductor manufacturers prefer focus rings with relatively long replacement cycles from a total cost of ownership (TCO) perspective."

Researcher Cho analyzed, "In the case of memory, the adoption rate is higher in NAND than in DRAM. NAND requires stacking of hundreds of layers, and the plasma etching intensity during the formation of vertical channels is overwhelmingly greater than in DRAM, so SiC must be used as the focus ring material to enable stable mass production."

He added, "With the recent outlook for a surge in demand related to QLC and the standardization of SiC adoption starting from V8, demand is expected to increase further."

Researcher Cho emphasized, "Going forward, the stock price is expected to enter a full-fledged upward phase as investment sentiment improves due to the recovery in the NAND market and rising interest in High Bandwidth Flash (HBF). Despite the recent short-term rally, the price-to-earnings ratio (PER) remains at 9 times, still at the lower end of the valuation band."