SK Securities said on the 7th that a strong order trend is appearing for Wonik IPS(240810). It maintained a "Buy" investment opinion and a target price of 190,000 won. The previous trading day's closing price of Wonik IPS was 92,600 won.
Wonik IPS posted revenue of 216.5 billion won and operating profit of 18.4 billion won in the second quarter of this year. They fell 11% and 50% on-year, respectively, missing the consensus (market forecast average).
Lee Dong-joo, an analyst at SK Securities, said it was "a distribution difference due to the lead time of revenue recognition by region," adding, "The order backlog surged to 400.4 billion won in the first quarter, and some overseas-bound orders are expected to be fully recognized as revenue in the third quarter." He projected third-quarter revenue at 401.1 billion won.
In particular, it analyzed that a strong order trend is appearing at Wonik IPS. New orders came to 627.5 billion won in the first quarter, and the order backlog surged to 400.4 billion won.
The analyst said, "As the schedules for expanding Samsung Electronics' Pyeongtaek Campus Line 4 (P4) PH3 and SK hynix's new M15X plant have been moved up, a strong order trend is appearing in the first half," adding, "For the second quarter as well, the size of new orders is estimated to be on par with, or greater than, the first quarter."
The strong order trend in the first half is said to be a factor that will soon raise expectations for second-half results. The analyst said, "Increasing supply to China's Changxin Memory (CXMT) is also an upside factor," adding, "Considering the Shanghai fab roadmap, revenue in 2027 is expected to exceed 100 billion won."
Considering the order backlog, an analysis is emerging that the share price will also rise.
The analyst said, "Amid various noise in the recent industry cycle, the share prices of equipment makers, including Wonik IPS, are also undergoing a correction," adding, "The order backlog surged in the first quarter and is estimated to increase again in the second quarter."
He added, "It is worth remembering that equipment makers' share prices have always moved in tandem with order backlogs."