Kiwoom Securities forecast on the 10th that it will post an operating loss in the fourth quarter due to temporary deterioration in profitability for Wonik IPS.
It lowered its earnings per share (EPS) from 2021 to 2022 and lowered its target price from 62,000 won to 50,000 won. The investment opinion remained 'buy'.
"Sales in the fourth quarter are expected to be 199.2 billion won, down 47% from the previous quarter, and operating loss is expected to be KRW-19.3 billion won, which turned into a deficit," Kiwoom Securities said. "The increase in one-off costs at the end of the year is reflected in sales and management costs, and is expected to suffer a drop in profitability compared to the previous quarter.".
"The balance of orders is expected to shift upward, benefiting from the equipment expansion of Samsung Electronics' P2, X2 and SK Hynix M16," Kiwoom Securities said. "This increase in order balances will serve as the basis for an earnings turnaround and a rise in stock prices in the first half of 2022.".
Kiwoom Securities added, "Considering the low valuation of the stock, it is attractive enough to start a buying."
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
