TCK, Continued demand growth…Target stock price increase(Cape Investment & Securities)

[Infostock Daily= Reporter An Hoe Hyun] Cape Investment & Securities raised its target stock price to KRW 160,000 from KRW 120,000 for TCK on the 21st, saying it expects demand growth to continue due to the increased number of layers in NAND memory and increased silicon carbide ring(SiC-Ring) penetration rate. The investment opinion remained on the Buy.

As the number of NAND layers continues to increase, demand for SiC-Ring is also on the rise. In addition, it is analyzed that demand will continue to be strong as aggressive NAND investment by major customers is expected to be carried out this year.

"We believe that TCK will need to increase additional production capacity(CAPA) to respond to demand due to the tight situation of SiC-Ring supply despite the recent expansion," the researcher Park explained, adding, "Although competitors for SiC products are entering the market, TCK's market share is very high within Before Market's major customers, Lam Research and Applied Materials."

Researcher Park diagnosed that competitors are also found to have direct supply(After Market) to memory companies or a product that does not significantly overlap with the product and process of TCK, so damage to its SiC-Ring market share is limited.

Reporter An Hoe Hyun ahh@infostock.co.kr