Daol Investment Securities announced on June 12 that it has raised its target price for V.M. from 96,000 won to 140,000 won, an increase of 46%, citing expectations for growth driven by new processes and an expansion of client companies. The investment recommendation remains at 'Buy.'
Goyoung-min, a researcher at Daol Investment Securities, stated, "The differentiated growth trajectory exceeding market conditions is becoming visible due to the effects of new processes and client company entries expected in 2027. Considering the favorable supply-demand effects from the inclusion in the KOSDAQ 150, the valuation gap with major domestic semiconductor equipment companies is likely to narrow."
Daol Investment Securities forecasts V.M.'s revenue for 2027 to reach 405.8 billion won and operating profit to be 132.6 billion won, reflecting increases of 37% and 53%, respectively, compared to the previous year, and adjusting previous estimates upward.
The anticipated increase in order volume, along with expanded market share from new processes and the potential for acquiring new clients based on existing references, contributed to these projections.
New process equipment is also highlighted as a growth driver. V.M. is pushing to enter the high-end segment of the poly-etching process based on its new WS equipment.
Currently, field tests are underway following successful wafer testing, with positive results reported. The company expects to complete quality certification in the first quarter of 2027, with significant revenue anticipated to begin in the second half of that year.
The entry into new overseas memory clients is also seen as imminent. Based on positive feedback from clients, wafer testing has concluded more quickly than expected, and field tests are progressing smoothly, with revenue expected as early as the first half of 2027.
The trend of improved performance is expected to continue. Daol Investment Securities projects V.M.'s revenue for the second quarter to be 92.9 billion won, with operating profit at 29.4 billion won, marking increases of 137% and 565%, respectively, compared to the same period last year. The visibility of performance has increased based on already disclosed order volumes.
* This article has been translated by AI.
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