Kiwoom Securities on the 10th said Wonik IPS is set to benefit from increased memory equipment investment by Samsung Electronics and SK hynix, projecting this year's operating profit to grow nearly 200% from a year earlier. It raised its target price to 160,000 won from 73,000 won and maintained a buy rating. The previous trading day's closing price for Wonik IPS was 124,300 won.
Wonik IPS's sales this year are expected to rise 45% from a year earlier to 1.32 trillion won, with operating profit up 199% to 220.4 billion won. That far exceeds the market consensus of 1.27 trillion won in sales and 166.0 billion won in operating profit.
Park Yu-ak, an analyst at Kiwoom Securities, said, "In semiconductors, new investment and upgrade investment at Samsung Electronics' Pyeongtaek Plant 4 and new investment at SK hynix's M15X will drive sales up 55% on-year to 1.1 trillion won."
Park said, "Displays are expected to see slight growth from a year earlier due to process upgrade investment at Samsung Display and new investment by Chinese companies."
Kiwoom Securities also noted that structural improvement through the supply of new equipment is becoming visible and projected a larger market share boost after 2027.
Park said, "Wonik IPS's share price has risen to a price-earnings ratio (P/E) of about 58 times, which appears to pose short-term pressure," but added, "As equipment investment by Samsung Electronics and SK hynix becomes visible, a share-price uptrend that prices in 2027 earnings per share (EPS) will emerge."