[Special Stock] VM Rises on Expectations of SK Hynix's Increased Facility Investment

VM has been on a four-day consecutive rise. This is interpreted as a positive effect on the stock price due to expectations of improved performance following the expansion of capital expenditures (CAPEX) by its major client, SK Hynix.

As of 10:55 AM on the 18th, VM is trading at 9,960 KRW, up 14.48% (1,260 KRW) from the previous session.

VM recorded sales of 33 billion KRW in the fourth quarter of last year, an increase of 798% compared to the same period the previous year, but posted an operating loss of 1.5 billion KRW. Although it achieved its highest sales since the second quarter of 2022 by receiving additional equipment orders in December last year, it is evaluated that it recorded a loss in the fourth quarter due to recognition of obsolete inventory and other sunk costs.

Park Sang-wook, a researcher at Shin Young Securities, said, "VM recorded an operating loss in 2023 due to reduced investment by its main client, but performance improvement is expected from the first half of 2025 due to increased investment in general-purpose DRAM capacity by SK Hynix." He projected VM's sales this year to increase by 48% year-on-year to 104.1 billion KRW. He also forecasted that VM would successfully return to profitability with an operating profit of 15.3 billion KRW.

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