Kiwoom Securities raised the target price for TES, a semiconductor equipment company, from 62,000 won to 250,000 won, a 303% increase, and maintained its 'buy' rating on the 20th. The adjustment reflects anticipated accelerated memory facility investments by Samsung Electronics and SK Hynix. Researcher Park Yu-ak stated that while memory facility investment acceleration is a burden factor for short-term memory market conditions, it is positive for the performance of equipment companies such as TES and Wonik IPS. TES's current stock price stands at 194,300 won based on the previous trading day's closing price. The target price revision reflects upward adjustments to performance forecasts from this year through 2030, with Kiwoom Securities maintaining an 'Overweight' opinion on the semiconductor sector.
Samsung Electronics Advances DRAM Investment Timelines at Pyeongtaek Facilities
Samsung Electronics is advancing its 1cnm DRAM conversion investment at Pyeongtaek Plants 1 and 2, according to Park Yu-ak. The company is also bringing forward the new DRAM investment timeline at Pyeongtaek Plant 4, with ramp-up expected to begin from Q1 next year. The new fab, Pyeongtaek Plant 5, will have its completion and front-end equipment delivery moved up to the first half of next year, with facility investment scale expected to be larger than initially anticipated.
SK Hynix Accelerates M15X DRAM Investment and Yongin Plant Expansion
SK Hynix's M15X DRAM new investment is progressing faster than initially expected, Park stated. The completion timeline for the expanding Yongin Plant 1 is also being moved up to early next year. Additionally, mass production supply of HBM4 (6th-generation high-bandwidth memory) for NVIDIA has normalized recently, and HBM4 back-end facility investment, which had been sluggish, is expected to accelerate in the second half of this year.
China's CXMT and YMTC Plan Large-Scale Facility Expansions
China's CXMT (ChangXin Memory Technologies) will pursue large-scale expansion following its listing, Park added. YMTC (Yangtze Memory Technologies) is also planning large-scale expansion.
TES and Wonik IPS Operating Profit Forecasts Exceed Market Expectations
TES's Q4 operating profit is forecast at 33.5 billion won, expected to exceed market expectations, with high growth performance anticipated to continue next year driven by factory investments from Samsung Electronics and SK Hynix. For Wonik IPS, Park forecasted Q3 operating profit at 77.5 billion won and Q4 operating profit at 101 billion won, both exceeding market expectations. Kiwoom Securities raised Wonik IPS's target price from 160,000 won to 180,000 won and maintained a 'buy' rating. Wonik IPS's current stock price stands at 140,700 won based on the previous trading day's closing price.
FAQ
Why did Kiwoom Securities raise TES's target price by 303%?
Kiwoom Securities raised TES's target price from 62,000 won to 250,000 won due to anticipated accelerated memory facility investments by Samsung Electronics and SK Hynix, which are positive for semiconductor equipment companies like TES.
What are Samsung Electronics' confirmed DRAM investment timelines?
Samsung Electronics is advancing its 1cnm DRAM conversion investment at Pyeongtaek Plants 1 and 2, bringing forward new DRAM investment at Pyeongtaek Plant 4 with ramp-up expected from Q1 next year, and moving Pyeongtaek Plant 5 completion and equipment delivery to the first half of next year.
What is TES's Q4 operating profit forecast?
TES's Q4 operating profit is forecast at 33.5 billion won, expected to exceed market expectations, with high growth anticipated to continue next year driven by Samsung Electronics and SK Hynix factory investments.
