Shinhan Investment & Securities said on the 18th that it is a time when a valuation reappraisal is possible for Chemtronics, as the company is expanding its business from an electronic components corporation into the semiconductor field.
Shinhan Investment & Securities maintained its buy rating on Chemtronics and raised its target price to 47,000 won from 36,000 won. That is 47.1% higher than the previous day's closing price (31,950 won).
Nam Goong-hyun, an analyst at Shinhan Investment & Securities, forecast that Chemtronics, after posting annual revenue of 647.5 billion won and operating profit of 39.5 billion won this year, will grow to revenue of 759.5 billion won and operating profit of 62.9 billion won in 2026. He cited the full-scale ramp-up of high-value businesses such as semiconductor materials and displays.
Nam said, "Chemtronics' semiconductor material has received quality approval and will begin supplying to memory and non-memory customers from the second half of this year," adding, "It may also supply to U.S. semiconductor manufacturing facilities (fabs)."
Nam also said, "By localizing the semiconductor reclaimed wafer business, Chemtronics has an edge as it can reclaim defective wafers generated in certain processes," adding, "We expect the business to ramp up in earnest starting in 2026."