Daol Investment & Securities on the 12th raised its target price for VM to 140,000 won from 96,000 won, saying the stock is relatively undervalued even within the semiconductors materials, parts and equipment sector. VM shares closed at 85,100 won in the previous session.
Ko Young-min of Daol Investment & Securities said, "VM's share price is relatively suppressed compared with major semiconductor equipment makers," and noted, "As the effects of entering new processes and winning new customers kick in in 2027, growth outpacing the industry will become visible." He added, "Considering the supply-demand improvement from inclusion in the KOSDAQ150, there is a high possibility the stock will go through a price catch-up process."
Daol Investment & Securities forecast VM's 2027 revenue and operating profit at 405.8 billion won and 132.6 billion won, respectively. That represents increases of 37% and 53% from this year's estimates. It projected second-quarter results this year at 92.9 billion won in revenue and 29.4 billion won in operating profit, up 137% and 565% from a year earlier.
Ko said, "Considering industry conditions at end markets and major customers' investment plans, order expansion on a larger scale than this year should be possible in 2027," adding, "We are preparing to enter the high-end area of the poly etching process based on new WS equipment." Ko said, "The field test atmosphere after completing the wafer test is also positive," and added, "We expect related revenue to start from the second quarter of 2027."
He also cited market share gains from entering new processes at customer sites as a growth driver. Ko said, "The wafer test underway with an overseas customer is also proceeding smoothly, so monetization should be possible from the first quarter of next year."
In particular, while domestic major equipment makers apply a price-earnings ratio (PER) of 30 times as a fair multiple, VM is currently stuck at 18 times, leading to the view that "the undervaluation will be resolved."