Shinhan Financial Investment raised its target stock price from 36,000 won to 44,000 won on the 17th, reflecting its fourth-quarter earnings forecast and its next high growth forecast. The investment opinion remained 'buy'.
GST's third-quarter sales were 73.4 billion won and operating profit was 12.1 billion won, up 104 percent and 473 percent, respectively, from a year earlier.
Shinhan Financial Investment explained that the expansion of scrubber sales through overseas semiconductor customers such as Micron and CXMT led the growth, adding that it was a positive performance that surpassed the consensus.
In the fourth quarter, the company predicted the next high growth due to increased volume, along with expectations of record high performance.
"The company is likely to achieve its highest performance in the fourth quarter due to increased sales of scrubber products, and annual sales are expected to reach nearly KRW 300 billion," Shinhan Investment said. "We expect to expand new customers overseas and increase sales through domestic customers next year.".
Shinhan Financial Investment analyzed that demand for Scrubber and Chiller linked to ESG policy will remain strong. Shinhan Financial Investment expects Chiller sales to increase 40.6% year-on-year to 101.4 billion won next year due to increased adoption of domestic customer companies based on product performance.
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
