DAISHIN SECURITIES on the 15th projected that Park Systems will continue to grow earnings despite a heavier base. It set a target price of 310,000 won and a "buy" rating. The previous trading day's closing price for Park Systems was 256,000 won.
Since its listing, Park Systems has recorded a strong sales growth rate of more than 20% annually. Some have therefore questioned the company's mid- to long-term sales growth target of maintaining 20% growth. An increase in fixed costs also affected whether profitability would expand.
DAISHIN SECURITIES noted that although base pressure has grown, current mid- to long-term growth drivers have also taken shape. It said that even amid rapid technological change, market interest in yield-improvement solutions has increased, and the widening adoption of atomic force microscopes is expected to continue.
Ryu Hyeong-geun, an analyst at DAISHIN SECURITIES, said, "The expanding penetration of hybrid bonding, an advanced technology related to high bandwidth memory (HBM), will drive outsize growth," adding, "In the short term, as 2.5D packaging expands its applications to mass-production lines starting next year, equipment supply is expected to increase in earnest."
He also saw benefits from product diversification. Ryu explained, "In the mid to long term, we expect expansion of the total addressable market (TAM) through the in-house developed FX series (with potential entry into the inspection market), as well as synergy effects with the acquired subsidiary."
He said, "Although more competitors are entering the industrial atomic force microscope market, excessive concern about a decline in market share should be avoided," adding, "As the opportunity factors for AFM are becoming concrete and, based on a clear technological moat, this company can seize those opportunities, a buy approach is valid."