[Click eStock] Is There Still a Cheap Semiconductor Equipment Company?

DaiShin Securities has raised its target price for HPSP from 63,000 won to 71,000 won while maintaining its Buy rating.

On the 29th, DaiShin Securities analyst Ryu Hyunggeun stated, “We project differentiated growth for the next two years, driven by increased capital expenditure (CAPEX) in the semiconductor supply industry,” adding, “Given inorganic growth opportunities based on ample cash flow, the current share price is still undervalued, so an aggressive buying approach is warranted.”

NAND is expected to be the primary driver of growth. Analyst Ryu commented, “Next year’s shipments of NAND-related equipment are expected to rise by 70% year-on-year, and the average selling price (ASP) will also increase due to diversification of the customer base.”

Analyst Ryu further explained, “HPSP is ramping up investments in transitioning to cutting-edge processes to respond to high-value product (server-centric) demand. As the stack count of 3D NAND expands to over 300 layers, the practical benefits of adopting high-pressure annealing equipment increase, and since virtually all players in the NAND industry are believed to have decided to adopt this equipment, HPSP is expected to supply to five customers next year.”

In particular, he noted, “A key characteristic of the 3D NAND process is that high stack count processing (expanded layering) and low stack count processing (new HCB processes) are being developed in parallel. As the penetration of HCB widens, the utility of high-pressure annealing equipment increases, presenting further upside potential.”

DRAM customer diversification is also expected. Ryu stated, “HPSP appears to currently have secured two customers, and when DRAM 1d development begins, the number of customers is expected to increase to three. The three DRAM companies are aiming to complete development of DRAM 1d within this year, and to set up DRAM 1d lines at their new plants scheduled for completion next year.”

Ryu also commented, “The market remains sensitive to the possibility of competitors entering the market. However, even if new entries materialize, the impact on HPSP’s market share is expected to be within 10% through 2028.”

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