Eugene Securities noted on the 29th that although this year's volume is expected to be somewhat low, it is analyzed as a representative beneficiary stock of the semiconductor process transition. It raised the target stock price from the previous 37,000 won to 47,000 won, maintaining its investment opinion of 'buy.' The closing price of Jusung Engineering on the previous trading day was 34,900 won.
Jusung Engineering's revenue for the first quarter of this year was 120.8 billion won, an increase of 113.6% compared to the previous year, and its operating profit was 33.9 billion won, up 382.3%. Both figures significantly exceeded the average expectations of the securities industry.
Im So-jeong, a researcher at Eugene Securities, explained, "Although sales in the display and Taeyang sectors were sluggish, the proportion of equipment for Chinese clients in the semiconductor division increased, and the volume of domestic clients' process transitions drove strong performance."
In the second half of this year, the process transition volume for major domestic and overseas client factories is expected to be recognized sequentially, and orders from Chinese clients are anticipated to begin in earnest. Researcher Im stated, "As the key processes for memory products transition to 1b, this year will see client expansion and increased volume aligned with these changes," adding that quality tests for glass substrates and new memory client products are also ongoing.
Researcher Im noted, "Due to the absence of investment in display and Taeyang, this year's volume may be somewhat low,” but emphasized that "the fact that it is a representative beneficiary stock of the semiconductor process transition and that such investments offset the delay in the production capacity (CAPA) expansion timeline is positive."