[Market Focus] TCK Surges Over 8% on Hopes for Advanced NAND Flash and Recovery in Utilization Rates

TCK is showing a strong performance with an 8% increase this year, driven by expectations for advanced NAND flash technology and a recovery in utilization rates.

As of 1:46 p.m. on January 26, TCK was trading at 196,500 won, up 15,200 won (8.38%) from the previous session.

Shinhan Investment & Securities maintained its "Buy" rating on TCK on this day and raised its target price to 220,000 won, stating, "With deferred sales from the fourth quarter of last year being reflected, first-half earnings this year are expected to be strong. The outlook for continued improvement in performance is supported by expectations for advanced NAND flash technology and a recovery in utilization rates."

Kim Hyungtae, Senior Researcher at Shinhan Investment & Securities, commented, "While revenue (72.2 billion won) and operating profit (20.3 billion won) in the fourth quarter of last year fell short of consensus (81.2 billion won and 23 billion won, respectively), deferred sales are expected to drive first-quarter revenue to 84.1 billion won and operating profit to 25.2 billion won, resulting in both top-line growth and margin improvement. The transition to NAND V9, the introduction of 2-nanometer (nm = one-billionth of a meter) gate-all-around (GAA) processes, and increased demand for silicon carbide (SiC) rings due to semiconductor advancements, as well as new revenue from China in the second half of the year, are expected to contribute to improved profitability."