Hyundai Motor Securities raised its target price for PSK, a semiconductor equipment manufacturer, from 194,000 won to 220,000 won on July 24, marking a 13.4% increase while maintaining a 'BUY' rating. Analyst Yoon Dong-wook cited global semiconductor manufacturers' capital expenditures expanding faster and larger than anticipated as the primary driver. The upgrade reflects PSK's dominant position in the PR strip equipment market and accelerated investment timelines from major customers including domestic memory makers, Chinese memory firms, and North American foundry companies.
Hyundai Motor Securities Raises PSK Target Price to 220,000 Won
Hyundai Motor Securities announced the target price adjustment on July 24, increasing PSK's valuation from 194,000 won to 220,000 won. The securities firm maintained its 'BUY' investment opinion. Analyst Yoon Dong-wook stated that major global semiconductor manufacturers' capital expenditures are expected to be executed faster, larger, and over a longer period than previously anticipated. He added that PSK's performance will continue an upward trajectory as the company's global dominance in PR Strip equipment persists.
Customer CAPEX Growth Accelerates Across Global Semiconductor Manufacturers
Hyundai Motor Securities highlighted that PSK's major customers are simultaneously expanding investments. Domestic memory companies are advancing their new fab equipment installation schedules, and the Yongin semiconductor cluster investment is expected to accelerate beyond original plans. Chinese memory manufacturers continue aggressive expansion based on funds secured after public listings, while North American foundry companies have resumed capital expenditures in line with CPU demand expansion and raised their CAPEX guidance. Analyst Yoon projected that CAPEX growth rates for PSK's four major customers will reach 55.6% this year and 26.3% next year.
PSK Maintains Global Market Leadership in Dry Strip Equipment
PSK's market dominance is expected to continue in the near term. The company's flagship product, dry strip equipment, recorded the number one global market share position as of last year. The competitive environment remains favorable due to U.S. semiconductor regulations against China. Equipment sales proportion is projected to increase as bevel etch equipment supply expands in line with process miniaturization.
Revenue and Operating Profit Projections Show Strong Growth
Hyundai Motor Securities forecasts PSK's revenue at 681.1 billion won and operating profit at 185.9 billion won for this year, representing increases of 49% and 110% year-over-year respectively. Next year, revenue is projected to reach 891.2 billion won and operating profit 258.7 billion won, marking growth of 30.8% and 39.2% respectively. For the second quarter, the firm estimated revenue at 164.7 billion won (up 51.9% year-over-year) and operating profit at 46 billion won (up 123.9% year-over-year), with an operating profit margin of 28%.
FAQ
What target price did Hyundai Motor Securities set for PSK stocks on July 24?
Hyundai Motor Securities raised PSK's target price from 194,000 won to 220,000 won on July 24, representing a 13.4% increase while maintaining a 'BUY' rating.
Why did Hyundai Motor Securities raise PSK's target price?
Analyst Yoon Dong-wook cited global semiconductor manufacturers' capital expenditures expanding faster and larger than anticipated, with PSK's four major customers' CAPEX expected to grow 55.6% this year and 26.3% next year, as the primary reason for the target price increase.
