Korea Investment & Securities said on Oct. 20 that HPSP has continued high growth since its listing on the back of foundry leading-edge process investments, and that earnings growth is expected to expand toward the second half. Accordingly, it maintained a buy rating and raised its target price by about 11% to 42,000 won from the previous 38,000 won.
Researcher Chae Min-suk at Korea Investment & Securities said, "In the second quarter of this year, some equipment sales at HPSP were recognized early, raising the base, so the third quarter will likely post results lower than the previous quarter," and added, "However, the annual supply schedule with customers is proceeding without change, and this year's results are estimated to be in line with the annual guidance."
Chae added, "Since the emergence of artificial intelligence (AI), the main customer has concentrated facility investments on advanced packaging, so HPSP's sales to foundries have stagnated compared with the past," and explained, "During this period, HPSP focused on equipment certification for new customers and now has secured all of the world's top 25 semiconductor companies as customers, including three top-tier logic and foundry customers."
Chae said, "Next year, recognition of sales to new customers will begin in earnest, while the resumption of investments by existing customers and demand for transitions to leading-edge processes will occur simultaneously, expanding the growth trend in results," and added, "With steady top-line growth and an increase in orders from overseas customers, the operating margin above 50% will rise further."
Chae continued, "Major customers are increasing facility investments and accelerating transitions to leading-edge processes," and emphasized, "As the recovery of NAND equipment sales to domestic customers—where there was no contribution after certification due to reduced investments—aligns with the expansion of applications following the completion of certification for annealing equipment for NAND hybrid bonding to overseas customers, the sales growth trend is expected to continue."