[Special Stock] KNSol Returns to DRAM Expansion... Expected Benefits Drive Rise
KNsol is on the rise. It appears that securities firms' analysis expecting benefits from DRAM expansion by major semiconductor companies has influenced this trend.
As of 10:36 AM on the 4th, KNsol was trading at 16,390 KRW, up 490 KRW (3.08%) from the previous trading day.
KNsol is a company that builds semiconductor cleanrooms and secondary battery dry rooms. As semiconductor and secondary battery technologies advance, the environmental conditions of manufacturing spaces greatly affect quality.
A researcher from Shin Young Securities stated, "DRAM demand is expected to be positive in 2025," adding, "Due to the replacement cycle of general servers, expansion of AI server investments, and increased on-device demand, annual DRAM demand is projected to rise by about 19%."
He explained, "Memory companies are also announcing expansion plans to respond to supply shortages in 2025," noting, "SK Hynix plans M15X, and Samsung Electronics plans P4 and P5 expansions." He added, "The expansion scale for SK Hynix and Samsung Electronics is estimated to be 100K and 250K, respectively."
He further stated, "It is necessary to pay attention to infrastructure-related companies that have secured Samsung Electronics and SK Hynix as clients," and explained, "KNsol's price-to-earnings ratio (PER) for 2024 is about 7.2 times, which is lower in valuation burden compared to competitors (14 to 16 times)."
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Shin Young Securities forecasted that KNsol's sales and operating profit this year will increase by 39.5% and 85.7% year-on-year to 582.5 billion KRW and 34.4 billion KRW, respectively. The researcher emphasized, "The performance of infrastructure companies is highly correlated with the total order amount from the previous year. In KNsol's case, sales are recognized according to progress rate and usually take about 12 months," adding, "Considering that the total order amount in 2023 was 737.4 billion KRW, sales are likely to exceed estimates."
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