[Click eStock] "Growth Continues"... Semiconductor Equipment Stocks Doubling Capacity

SK Securities has raised its target price for Wonik IPS from 180,000 won to 190,000 won. The investment rating remains a buy.

On July 14, Lee Dongju, a researcher at SK Securities, stated, "Memory manufacturers are accelerating their medium- and short-term expansion plans," and added, "Since the goal is to double production capacity by 2030, we expect the growth trend to continue through 2028."

For the second quarter of this year, sales are expected to reach 240.4 billion won, up 46% from the previous quarter, while operating profit is projected to rise 102% to 21.6 billion won over the same period. Lee noted, "At the end of the first quarter this year, the order backlog surged to 400 billion won, and considering the lead time, we anticipate sales growth centered on domestic customers. Meanwhile, deliveries to China and the United States will be reflected as sales in the third quarter of this year."

The expansion plans of major domestic clients are expected to continue through 2028. Lee commented, "A DRAM expansion of 150,000 wafers per month is becoming the new normal," and added, "The order backlog soared in the first quarter of this year, and starting from the third quarter, we will begin to see the results reflected in actual performance."

He continued, "Compared to this year, next year's expansion could increase by up to twofold. The setup for Samsung Taylor Fab PH1's investment is also expected to be completed in the second half of this year." He further stated, "Foundry sales this year are also recovering from sluggishness, reaching around 153 billion won, and supply to Changxin Memory Technologies (CXMT) is also recovering, so next year's sales are expected to grow as well."

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