[Click eStock] "Wizit Revalued as a Semiconductor MCE Company... Subsidiary Equity Value Exceeds Market Cap"

On June 23, independent research firm ValueFinder analyzed that Wizit may undergo a full-fledged revaluation as a semiconductor materials, components, and equipment (MCE) company, moving beyond its existing reputation as a display equipment parts manufacturer. In particular, it assessed that the combined value of Wizit's major subsidiary stakes currently exceeds its market capitalization, indicating that the company is undervalued compared to its asset value.

Wizit was founded in 1997 and listed on the KOSDAQ market in 1999 as a company specializing in semiconductor and display equipment components. After successfully localizing upper electrodes—consumable parts used in display processes—the company has been manufacturing and supplying components for deposition, lithography, and etching equipment, which are core processes for semiconductors and displays.

Recently, as semiconductor and display manufacturing processes have become more advanced, Wizit's precision hole processing technology has also been receiving attention. Due to the nature of processes that require uniformly injecting gas through numerous holes on large panels and wafers, a high degree of processing precision is necessary, and this technological capability is expected to serve as a future competitive advantage.

According to ValueFinder, Wizit reported stand-alone revenue of approximately KRW 9.5 billion and operating profit of about KRW 400 million in the first quarter of this year. Compared to the same period last year, revenue rose by 16.3% and operating profit by 137%. On a consolidated basis, the company posted revenue of KRW 116 billion and operating profit of KRW 4 billion. The decrease in operating profit was attributed to the base effect from its subsidiary Powernet, as well as a temporary increase in labor costs.

However, the company explained that profitability has been recovering from the second quarter due to improved demand for semiconductor component equipment, and it is expected to continue benefiting from increased investments by memory semiconductor companies such as SK hynix.

The potential to expand cooperation with global semiconductor companies was also highlighted as an investment point. Wizit is currently supplying five sample types and undergoing evaluation for two types with TSMC, and is also conducting evaluations for two sample types with Kioxia.

The fact that Wizit has a history of supplying to YMTC was also considered a positive factor. ValueFinder projects that, even under conservative assumptions, overseas sales could increase by an additional KRW 50 billion by 2029.

Expansion of the largest shareholder’s stake and the value of subsidiaries are also points of interest. In May, Wizit completed a capital reduction without compensation, and in June, it raised approximately KRW 4 billion through a third-party paid-in capital increase, raising the stake of its largest shareholder, JSI Holdings, from 35.2% to 38.9%. The company plans to use this as a basis to expand its production capacity.

In addition, the value of Wizit's major subsidiary holdings has been assessed as exceeding its current market capitalization based on the present share price. The 37.7% stake in Powernet is estimated at about KRW 46.3 billion, the 30.77% stake in TScientific is about KRW 8.2 billion, and the 3.51% stake in Hansung Clean Tech is about KRW 3.7 billion. The combined value of these three subsidiary stakes is approximately KRW 58.2 billion, surpassing Wizit's current market capitalization of around KRW 52.9 billion.

Lee Choongheon, a ValueFinder analyst, stated, "Wizit is at a turning point where it is being re-evaluated as a semiconductor MCE company, rather than just a display equipment parts manufacturer," adding, "As discussions for supply with global semiconductor companies continue based on its precision hole processing technology, it is important to pay attention to the potential for mid- to long-term overseas sales growth."

He continued, "The fact that the value of subsidiary holdings in Powernet, TScientific, and Hansung Clean Tech alone exceeds the current market capitalization shows that the company's enterprise value is undervalued," and added, "Two upward factors—growth potential from a recovery in the semiconductor industry and a revaluation of asset value—could work simultaneously."

Wizit is expected to accelerate its transformation from a conventional display parts manufacturer into a global semiconductor MCE company by expanding its semiconductor components business and increasing supply to global clients.

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