[Click eStock] "Park Systems Maintains Double-Digit Growth for 7 Years... Target Price Raised"

On May 27, Shinhan Investment Corp. reported that Park Systems has sustained double-digit growth for the seventh consecutive year, and raised its target price from 310,000 won to 370,000 won. The investment opinion remains 'Buy.'

Hyungtae Kim, an analyst at Shinhan Investment Corp., stated, "Reflecting expectations for second-half results, we have raised our annual revenue estimate by 4% and operating profit by 24% compared to our previous forecast," adding, "It is important to focus on the company's long-term growth, which is based on its dominant position in the industrial AFM (Atomic Force Microscope) sector."

Park Systems is a leading company that developed the first non-contact AFM and currently holds a monopoly in its production. The company commands an 80% market share in industrial (semiconductor) AFM equipment, underscoring its dominant market position.

As equipment deliveries in the first half of the year have been delayed compared to expectations, earnings are anticipated to be concentrated in the second half. Analyst Kim projected, "Park Systems’ revenue this year is expected to reach 240.5 billion won, up 17% year-on-year, and operating profit is projected to rise by 46% to 61.8 billion won. While the pace of top-line growth may slow somewhat, profitability is expected to improve. Orders for advanced packaging equipment (NX-TSH) from global customers appear to have been delayed more than anticipated. However, the contribution to results from core equipment such as NXWafer (wafer metrology), NX-Mask (photomask repair), and NX-Hybrid WLI (white light interferometer) is expected to increase gradually."

Shinhan Investment Corp. estimates that Park Systems’ second-half growth rates, compared to the first half, will be 66% for revenue and 358% for operating profit. Analyst Kim said, "The phenomenon of earnings concentration has intensified due to delayed equipment deliveries. Although the total value of new orders in the first quarter was down 20% year-on-year, the order backlog remains at a similar level of 87.1 billion won." He added, "There is a possibility that order volumes will increase from the second quarter onward, and considering the 3- to 4-month lead time, there should be no significant problem with deliveries for orders secured by the end of the third quarter."

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