[Market Focus] "DRAM Cycle Beneficiary" Eugene Technology Rises 4.43%

Eugene Technology, emerging as the biggest beneficiary in the DRAM investment cycle, is showing strong stock performance. As of 9:13 a.m. on October 20, the company's shares were trading at 84,800 won, up 3,600 won (4.43%) from the previous trading day.

On this day, Korea Investment & Securities maintained its "buy" rating on Eugene Technology and raised its target price by 50% to 108,000 won, citing that the company stands to benefit the most in a situation where both DRAM process migration and capacity expansion are occurring simultaneously.

Chae Min-sook, a researcher at Korea Investment & Securities, stated, "Eugene Technology supplies equipment to all three major DRAM manufacturers-Samsung Electronics, SK Hynix, and Micron. Not only is the company diversifying its process portfolio in its main product, LPCVD (Low-Pressure Chemical Vapor Deposition), which accounts for more than half of its sales, but the number of layers applying epitaxy equipment is steadily increasing due to DRAM process miniaturization."

She added, "With rising demand for both HBM (High Bandwidth Memory) and conventional DRAM, investments in DRAM process migration and capacity expansion are expected to continue long-term, through 2028. Eugene Technology is the front-end equipment company that will benefit most directly from the investment expansion cycle driven by structural growth in the DRAM sector."