KOSDAQ-listed VM was strong early on the 19th. Buying is seen gathering on news that it signed a large-scale equipment supply contract with SK hynix.
As of 10:05 a.m. that day, VM was trading at 28,450 won, up 1,750 won (6.55%) from the previous session.
Semiconductor etching equipment maker VM disclosed that after the close on the 16th it signed a 78.3 billion won semiconductor manufacturing equipment supply contract with SK hynix.
The contract runs until May 15, with 90% of the payment to be received upon delivery and the remainder after setup is completed.
Kim Rok-ho, a researcher at Hana Securities, said, "Based on this order disclosure, VM can achieve profitability close to a 30% operating margin in the first half of this year," and noted, "New equipment supplies and clients' conversion investments will continue in the second half as well."
Hana Securities raised VM's target price that day to 41,000 won from 39,000 won. Kim said, "Judging that it is undervalued relative to results, we present VM as our top pick in the sector."