Zeus, The prospect of high growth due to the benefits of localization(SK Securities)

[Infostock Daily= Reporter An Hoe Hyun] On the 23rd, SK Securities expects Zeus to grow thanks to the localization cycle of mid- to long-term cleaning equipment. It has started the coverage with target stock price of 43,000 won and investment opinion of 'Buy'.

"Zeus is the only company in Korea that specializes in wet cleaning equipment for pre- and post-semiconductor processes and has both single and batch types," the company explained.

"We expect record-high performance this year," the company explained, adding, "The localization effect of batch type cleaning equipment will begin after the completion of the Hwaseong plant, and the reduction effect in research and development costs(estimated at 10 billion won) increased in 2020 for localization will be overlapped."

"Considering the domestic semiconductor investment cycle, it is expected to have a localization effect from the 2nd~3rd quarters of this year," the company explained, adding, "Profitability improvement due to reduced R&D costs will proceed gradually from the first half of the year."

Reporter An Hoe Hyun ahh@infostock.co.kr