Shinhan Investment and Securities analyzed on the 25th that DI is expected to see an accelerated improvement in earnings on the back of strong demand for memory semiconductors and the possibility of monopolizing supply volumes to a key customer. It initiated coverage with a target price of 45,000 won and a "buy" rating. DI closed the previous trading day at 36,450 won.
Shinhan Investment and Securities estimated DI's revenue this year at 508.2 billion won, up 17.5% from a year earlier, and operating profit at 65.6 billion won, up 79.7%.
Song Hye-su, an analyst at Shinhan Investment and Securities, said, "Shipments of equipment from subsidiary Digital Frontier were concentrated in the third quarter and edged down," adding, "With increases in selling, general and administrative expenses and research and development expenses, the operating margin came in at 4.6%, and the subsidiary is believed to have supplied around 130 units in total last year of high-bandwidth memory (HBM) and DDR5 test equipment."
The analyst also projected continued high growth in Digital Frontier's HBM test equipment and a resumed recovery in DDR5 and package test equipment.
Song said, "For HBM test equipment, it is possible to secure a market share of more than 70% as the first-priority vendor at the customer," adding, "With a gradual recovery expected, growth of 10.8% is anticipated."
She also forecast DI's 2026 revenue at 508.2 billion won and operating profit at 65.6 billion won.