Shares of KOSDAQ-listed STI were strong early on the 9th. The rally appears to be driven by orders for power semiconductor manufacturing equipment and related bullish earnings outlooks from the securities industry.
As of 9:49 a.m. that day, STI was trading at 28,900 won, up 2,150 won (8.04%) from the previous session. It rose to as high as 29,200 won intraday, hitting a 1-year high.
STI, a front-end semiconductor equipment maker, said just before the close of regular trading the previous day that it had signed a 97.8 billion won supply contract for power semiconductor manufacturing equipment with the Chinese joint venture Nova Tech Semiconductor (NTS).
The contract amount is 97.83839 billion won, and the contract period runs from the 5th of this month to Sept. 4, 2027.
The securities industry also issued a bullish outlook related to this. DAOL Investment & Securities said STI has entered the new process equipment market for power semiconductors for the first time, which could lead to expanded contracts with major global customers in the future.
On the day, Ko Young-min, an analyst at DAOL Investment & Securities, said, "STI is expected to see a rerating as its core business results are maximized by large-scale infrastructure investment in memory." He then raised the target price to 43,000 won from 38,000 won.