DB Financial Investment maintained its target price of 60,000 won and investment opinion 'buy' for Eugene Tech.
"Eugene Tech posted a record-high performance with its meaningful performance of local equipment being prepared amid continued sales growth due to the expansion of new DRAM investment this year, and the warehousing of such new equipment is expected to lead to a sharp increase in equipment sales per unit as memory migration is carried out in the future," DB Financial Investment said in a report on the 15th.
"Nevertheless, as a result of sluggish stock prices due to uncertainties in the front-line industry, Eugene Tech's current valuation is an attractive section with a stock price asset ratio of 10.7 times (2022) based on its prior performance in 2022," DB Financial Investment explained.
Eugene Tech recorded sales of 94.3 billion won and operating profit of 27.6 billion won in the third quarter. This is an increase of 61.8% and 91.5%, respectively, compared to the same period last year.
Due to LPCVD equipment orders from SK Hynix's Wuxi Line to China and increased supply of Large Batch ALD equipment for Samsung Electronics' Pyeongtaek 2 D-RAM, its performance exceeded expectations despite limited investments by front-line companies in the 3rd quarter.
DB Financial Investment predicts that Eugene Tech will continue to make new investments in SK Hynix and M16 in the fourth quarter, with annual sales of 338.4 billion won and operating profit of 86.4 billion won this year.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
