[Click e-Stock] Komico Set for Full-Fledged Growth from Next Year... Target Price Raised to 240,000 Won

On May 27, Mirae Asset Securities raised its target price for Komico from 120,000 won to 240,000 won, citing expectations for a full-fledged profit growth.

Younggeon Kim, a researcher at Mirae Asset Securities, projected, "Next year's expected profit growth rate will reach 56.4%, which exceeds both the market consensus of 25.5% and the industry average growth rate of 21.9%."

Kim explained, "Komico's first-quarter sales reached 157.1 billion won, up 16.4% year-on-year. The growth in cleaning/coating at the Anseong site continued due to higher operating rates at domestic client companies, while Mikoceramics also sustained growth driven by strong demand for heaters and ESC."

He added, "Operating profit dropped by 34.6% year-on-year to 20.5 billion won, mainly due to the initial recognition of fixed costs from recent large-scale investments. However, from the second quarter onwards, both sales and operating profit are expected to enter a full-fledged growth phase."

He further observed, "In the second quarter, customer demand for Mikoceramics is showing exceptional strength, and quarterly sales are expected to reach a record-high of 78.6 billion won. Although the initial stage entails significant cost burdens, from July, initial sales from the Solidigm business at the Dalian subsidiary in China and from Samsung Foundry at the Phoenix subsidiary in the United States are expected to begin being recognized."

Kim stated, "Through investments, Mikoceramics' annual capacity is expected to expand from the current 350 billion won level to 500 billion won. Accordingly, we estimate Komico's operating profit for this year and next year at 128 billion won (up 15.3% year-on-year) and 200.2 billion won (up 56.3% year-on-year), respectively."

This content was produced with the assistance of AI translation services.