Hana Securities forecasted on the 19th that TES will continue to improve its profitability through the supply of advanced process equipment. It raised the target stock price from the previous 34,000 won to 45,000 won and maintained an 'buy' investment opinion. The previous trading day's closing price for TES was 27,850 won.
In the second quarter of this year, TES recorded sales of 82.1 billion won and operating profit of 20.4 billion won. This represents an increase of 36% and 104%, respectively, compared to the previous year.
The increase in sales was significantly influenced by the semiconductor equipment. Kim Rok-ho, a researcher at Hana Securities, noted, "The demand for CVD equipment from overseas clients and the investment in NAND conversion by Samsung Electronics were key factors."
The reason operating profit increased more than sales is that the product mix improved significantly due to the expansion of overseas clients and advanced process equipment. Researcher Kim said, "Recently, the proportion of TES's main equipment has been expanding within advanced processes, which will be positive for structural profit improvement in the future."
The performance in the third quarter of this year is expected to slow down compared to the first and second quarters but rebound in the fourth quarter. Researcher Kim explained, "The fourth quarter is likely to achieve solid results related to investments by SK hynix, as originally expected."
Researcher Kim also stated, "While sales to overseas clients are likely to fluctuate in the future, profitability improvement through the supply of advanced process equipment is a sustainable fundamental factor going forward," adding, "Since the equipment lineup has been continuously upgraded since the second half of last year, there is potential for operating profit margin to increase."
He further added, "As SK hynix's new investment in DRAM 1b nano and Samsung Electronics' new investment in 1c nano and NAND conversion investment can benefit, the aspect of order momentum (upward potential) also ensures stability in the results due to the limited gaps."