"Chemtronics sees expanded demand from global customers"...Target Price Cut

[Financial News] Hyundai Motor Securities lowered its target price for Chemtronics from KRW 47,000 to KRW 34,000, while noting that the company’s core business continues to grow and new growth drivers remain in place. The previous target price was based on a 24.4-times valuation, reflecting a 20% premium over peer semiconductor-materials companies in anticipation of through-glass via (TGV) technology. The brokerage maintained its Buy rating.
On the 4th, Donghyun Shin, an analyst at Hyundai Motor Securities, said, "As demand for semiconductor materials continues to rise with the front-end market entering a supercycle, investors should focus on the broader picture of Chemtronics’ etching technology expanding into TGV applications. The case for adopting glass substrates is becoming increasingly clear as flip-chip ball grid arrays (FC BGAs) grow larger and shortages of related components and materials accelerate."
Shin noted, "What is particularly noteworthy is the expansion of demand from global customers. In the short term, overseas sales led by North America are expected to increase, while in the medium to long term, access to upside potential in China also appears viable."
He added, "While the penetration rate of application-specific integrated circuits (ASICs) is expected to continue rising, Intel’s investment and technology development related to glass substrates are also ongoing. In particular, with continued volume secured in back-end processes and ASIC companies expected to expand their orders, Chemtronics could win orders and secure customers through its TGV technology if the market begins to take off."
However, he explained, "A somewhat conservative approach is needed regarding panel etching. Along with sluggish exports of rigid OLEDs, utilization rates on 8.6-generation lines are expected to be lower than anticipated. This is because set manufacturers’ shipments are being estimated conservatively due to rising memory prices."
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