The semiconductor parts specialist HAESUNG DS recorded poor results in the first quarter of this year, but analysis has noted that uncertainty regarding final demand continues.
On the 7th, BNK Investment Securities downgraded its target price for HAESUNG DS from the previous 36,000 won to 33,000 won while maintaining its investment opinion as 'buy.' The final transaction price for HAESUNG DS on the previous trading day was 22,200 won.
In the first quarter of this year, HAESUNG DS recorded sales of 137.5 billion won, a decrease of 11% compared to the previous year due to a drop in demand. Operating profit plummeted 98% year-on-year to 400 million won. Both figures fell short of the average forecasts from securities firms by 7% and 96%, respectively.
Lee Min-hee, a researcher at BNK Investment Securities, explained, "Despite healthy customer demand for automotive semiconductor post-manufacturing packaging tests (OSAT), the decline in demand from integrated device manufacturers (IDM) was much greater, and package sales decreased by 12% compared to the previous quarter due to a drop in memory. "
The researcher projected that in the second quarter of this year, the supply of double data rate (DDR) 5 packages for strategic clients would resume, and lead frame sales for new North American clients would begin to increase significantly, leading to expected performance improvements. However, he noted that meaningful improvements in performance are expected to occur next year. He stated, "Despite the lowered performance outlook, the current stock price is in an oversold state, and it is necessary to approach this from a long-term perspective until there are changes in the performance flow direction."
On the same day, DB Securities also lowered its target price for HAESUNG DS from the previous 32,000 won to 29,000 won. DB Securities estimates that HAESUNG DS's revenue and operating profit in the second quarter will decrease by 3.2% and 63.7% year-on-year, respectively, to 148.5 billion won and 6.5 billion won.
Jo Hyun-ji, a researcher at DB Securities, said, "The mix of package substrates has weakened, and we have not maintained double-digit profitability since the third quarter of last year," and added, "It seems difficult to show double-digit profitability again within this year, and I recommend a long-term approach."
Meanwhile, on the 2nd, Samsung Securities and Eugene Investment & Securities also downgraded their target prices for HAESUNG DS from 33,000 won to 27,000 won and from 34,000 won to 31,000 won, respectively. Samsung Securities also lowered its investment opinion from 'buy' to 'neutral.'