Kiwoom Securities announced on June 5 that it has raised its target price for Park Systems from 300,000 won to 355,000 won, an increase of 18.3%, citing a rapidly growing order backlog that is expected to boost performance in the second half of the year. The investment recommendation remains a 'buy.'
Oh Hyun-jin, a researcher at Kiwoom Securities, noted, "Although interest in the semiconductor industry has waned due to the growth potential of existing mass production equipment, Park Systems continues to show solid growth regardless of market conditions."
In the first quarter of this year, Park Systems reported revenue of 39.4 billion won, a 23% decrease from the same period last year, while operating profit fell 84% to 2.1 billion won. Analysts attribute the decline to reduced shipments of industrial equipment and increased costs from mergers and acquisitions (M&A) and workforce expansion.
In the first quarter, industrial equipment accounted for 64% of total revenue, while research equipment made up 33%. Regionally, sales were distributed with 34% from China, 32% from the United States, and 11% from South Korea. The share from the U.S. continues to grow due to customer diversification.
Kiwoom Securities anticipates a significant improvement in performance starting in the second half of the year, forecasting second-quarter revenue of 44.9 billion won and operating profit of 8 billion won.
The firm highlighted that the order backlog reached 87.1 billion won at the end of the first quarter and increased to 97.8 billion won by the business report submission date of May 14. Oh stated, "The high order backlog supports a strong performance trend, and the growth in the second half could exceed market expectations."
New equipment development and expanded production capacity are also seen as growth drivers. The NX-THS equipment, aimed at advanced packaging, is optimized for large-area sample inspection, with expectations for additional orders from major clients within the year.
Recently, Park Systems announced plans to invest 40 billion won in expanding production capacity and 60 billion won in research and development and external technology investments. The company is also continuing its business expansion through M&A, having acquired a digital holographic microscope company earlier this year and recently a probe manufacturer used in semiconductor testing.
Kiwoom Securities projects Park Systems' revenue for 2026 to reach 237.9 billion won, with an operating profit of 53.1 billion won, representing increases of 16% and 26%, respectively, from the previous year. Oh remarked, "Due to the nature of its equipment, Park Systems is relatively less affected by the conditions of the upstream industry, and we expect continued solid performance growth and an upward trend in corporate value."
* This article has been translated by AI.
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