"Existing Business and New Ventures to Grow"...Semiconductor Equipment Stock Set to More Than Double Its Profits

There is an outlook that the stock price of KOSES, a company specializing in semiconductor post-processing and precision automation equipment, will surge by more than 80% from its current level.

According to Research Alarm on August 3, KOSES’s appropriate stock price is estimated at 36,000 won, representing an 82.7% potential increase compared to the closing price on July 31, which was 19,700 won.

First, new business momentum is expected. KOSES has been expanding its business scope since supplying laser processing equipment for AirPods in 2018, and this year, the company is scheduled to make its first delivery of automated equipment for applying solid oxide fuel cell (SOFC) electrode cell materials, developed based on automation technology for semiconductor packaging processes.

Notably, performance is anticipated to be reassessed based on a contract with global SOFC player Bloom Energy. KOSES has received cumulative orders worth 237.1 billion won from Bloom Energy, with initial revenue recognition set to begin in the third quarter of this year. In addition, as Bloom Energy plans to expand its SOFC production capacity to 5 GW by next year and to 13 GW by 2032, there is a high likelihood that KOSES will benefit.

Existing business segments also continue to show robust growth. The main product in the semiconductor division is the shoulder ball attach equipment, which is estimated to have a market share exceeding 90%. The business model is structured so that orders continue to come in when clients change processes or technical specifications, generating demand for part replacements. Furthermore, ultrafine shoulder ball attach solutions for AI accelerator response require upgrades to the equipment itself, which inevitably drives revenue growth.

KOSES’s performance is also projected to rise. This year’s sales are expected to reach 177.9 billion won, up 116.0% from last year’s 82.4 billion won. Over the same period, operating profit is projected to grow from 17.4 billion won to 42.2 billion won, a 142.4% increase.

Doyoun Kim, a researcher at Research Alarm, stated, "While equipment other than that for secondary batteries is recognized based on delivery to India, which could cause quarterly results to fluctuate, beginning this year, the business is expanding into automated electrode cell equipment for AI servers, so substantial annual growth in performance is anticipated."

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