April 27, 2024

• 

[THE INVESTOR] Wonik Materials will maintain its earnings momentum, said NH Investment and Securities on Aug. 2, maintaining a “buy” recommendation and 79,000 won (US$70.58) target price. 

Its revenue in the second quarter rose 10 percent on-year to 54.4 billion won and operating profit by 42.2 percent to 11.5 billion won, beating market consensus. Increase in sales of higher-margin products for NAND and over 1 billion won return of appropriation for inventory boosted its earnings. Rise in demand for materials to meet expanding production of DRAM and NAND also contributed to lifting the bottom line, said analyst Seo Jun-hyeon.

A major client’s new semiconductor line will begin full operations while demand from display industry will recover, and the company’s earnings will remain on an upswing, forecast the analyst.

By Hwang You-mee (glamazon@heraldcorp.com)