DB Securities announced on June 26 that it has raised its target price for Wonik Materials by approximately 33%, from 43,000 won to 57,000 won, citing a favorable semiconductor market, increased customer operating rates, and anticipated price hikes. The firm maintained its investment rating at "buy."
Seong-yeon Seo, a researcher at DB Securities, stated, "We expect the upward trend in customer operating rates to continue in the second half of the year due to the robust semiconductor market. Starting in the third quarter, we anticipate improvements in performance driven by 1) the expansion of supply from major customers' domestic and overseas fabs, and 2) price increases linked to rising costs."
For the second quarter, the company is projected to meet market expectations, with estimated revenues of 90.4 billion won and an operating profit of 16.1 billion won. Increased sales are expected due to higher DRAM operating rates among domestic memory customers, although profitability may remain stable compared to the previous quarter due to rising logistics costs stemming from the conflict in the Middle East.
Looking ahead to the second half of the year, improvements in performance are anticipated as the effects of price increases and expanded supply from major customers' semiconductor fabs take hold. For 2026, revenues and operating profits are expected to reach 380.6 billion won and 70.9 billion won, respectively, representing growth of 18% and 25% year-over-year. Projections for 2027 are 435.5 billion won in revenue and 84 billion won in operating profit.
Seo added, "We are paying close attention to the acceleration of NAND transition investments and the expansion of special gas supply due to the operation of overseas foundry fabs."
* This article has been translated by AI.
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