NH Investment & Securities announced on June 29 that it is raising its target price for Wonik IPS from 161,000 won to 207,000 won, reflecting expectations for increased global semiconductor equipment investment and improved performance in the second half of the year. The firm maintained its "buy" rating.
Research analyst Ryu Young-ho stated, "As the inference market expands and semiconductor companies face supply shortages, there is a widespread increase in capacity across memory, foundry, packaging, and semiconductor equipment sectors. The growth potential of Wonik IPS, which can benefit evenly from both the memory and foundry segments, is becoming more apparent."
He added, "The equipment investment cycle is expected to intensify from the second half of this year through 2028, supported by the recent expansion of multi-year contracts among memory companies, which is likely to prolong this investment cycle. The schedule for new site openings has been moved up, increasing expectations for performance in 2027."
Ryu noted that the company's second-quarter revenue is projected to be 233.8 billion won, a 3.4% decrease compared to the same period last year, while operating profit is expected to drop 42.3% to 21 billion won, slightly below market forecasts. He explained that while display revenue is anticipated to be weaker than expected, investments in NAND transitions and some semiconductor projects being accelerated will offset this decline.
He further stated, "The company's significant performance improvement is expected to begin in the third quarter as investments in foundry and NAND transitions take effect. The resumption of construction at major clients' foundry sites in the U.S. and the visibility of new memory lines and generational transitions will strengthen growth momentum."
* This article has been translated by AI.
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