SEOJIN SYSTEM's Vietnam production and U.S. local assembly line operations to enter a normalization phase from Q3

[Financial News] SK Securities said on the 28th that SEOJIN SYSTEM's Vietnam production base and U.S. local assembly line appeared to be entering a normalization phase starting in the third and fourth quarters. It also determined that production of next-generation products for major global customers was proceeding without significant changes. SK Securities maintained its 'Buy' rating on SEOJIN SYSTEM and raised its target price from KRW 55,000 to KRW 70,000.  
Na Seung-doo, a researcher at SK Securities, said, "We believe SEOJIN SYSTEM has entered a phase of benefiting from strengthened relations and expanded cooperation between South Korea and Vietnam. SEOJIN SYSTEM has the ability to generate profits in its semiconductor equipment and energy peripheral equipment businesses. The performance of the entity responsible for the semiconductor equipment business is growing rapidly at an annual rate of more than double digits. On a cumulative basis for the first half of this year, it grew 96% compared with the same period last year."
Na said, "The recovery of the ESS business also deserves attention. The weaker-than-expected first-half performance is not disappearing; instead, it will be reflected in installments from the second half of this year through next year," adding, "As deliveries to global customers recover starting in the third and fourth quarters and shipments from the U.S. hub line begin, the second half will show a clear recovery in earnings."
Hydrogen fuel cells, which have emerged as a key energy source for AI infrastructure, are seeing discussions over long-term contract-manufacturing supply agreements become more concrete as customer orders surge. The overall deal value, including SEOJIN SYSTEM's long-term supply agreement, is estimated to clearly exceed market expectations. As the U.S. local supply line also appears to have begun shipments, its contribution to year-end earnings is expected to be substantial.

[email protected] Kang Gu-gwi Reporter