[Market Focus] Tess Hits Record High on Expectations of Earnings Growth Amid Memory Semiconductor Boom

Tess is showing strong performance in early trading.

As of 9:05 a.m. on October 20, Tess was trading at 50,700 won, up 8.33% (3,900 won) from the previous trading day, marking a new 52-week high. This surge is interpreted as being driven by improved investor sentiment following analyst reports that Tess is expected to deliver solid earnings growth thanks to favorable conditions in the memory semiconductor sector.

Chae Minsook, a researcher at Korea Investment & Securities, stated, "In the past, Tess's earnings were heavily tied to the NAND investment cycle, resulting in sharp earnings adjustments every one to two years. However, since 2021, the company has expanded its DRAM-related sales, gradually reducing earnings volatility." She added, "From 2026 to 2027, capital expenditures (Capex) for both DRAM and NAND are expected to increase, allowing Tess to benefit from both process transitions and expanded production capacity."

This year, sales contributions from new equipment lines have begun, and with the acceleration of advanced process transitions, the applications for new equipment are expected to continue expanding from next year. Chae also noted, "Tess is upgrading its mainstay ACL equipment for advanced process applications to prepare for investments in 1c nanometer and subsequent advanced processes. By modifying existing equipment to raise the average selling price (ASP) and diversifying its portfolio, the company is securing mid- to long-term growth drivers."