DS Investment Securities announced on June 1 that it expects increased demand for greenhouse gas reduction solutions due to the expansion of semiconductor equipment investments. The firm has initiated a "buy" rating for EcoPro HN and set a target price of 45,000 won.
Analyst An Joo-won stated, "The semiconductor investment cycle is aligning with the growth phase of cleanroom chemical filters and greenhouse gas reduction solutions. Notably, the growth potential of the highly profitable greenhouse gas reduction solutions is expected to be significant."
He added, "Cleanroom chemical filters are essential consumables for improving semiconductor process yields, leading to stable replacement demand. Greenhouse gas reduction solutions are also becoming essential equipment due to the expansion of emissions trading systems and environmental, social, and governance (ESG) management practices."
An further explained, "As new investments in domestic upstream industries gain momentum, we anticipate an increase in related orders starting this year. The acquisition of new clients will also expand based on large-scale greenhouse gas treatment technologies utilizing catalytic methods."
He projected that this year, EcoPro HN's revenue will reach 191.4 billion won, with operating profit of 32.3 billion won, marking increases of 35.7% and 175.3%, respectively, compared to the previous year. He noted that the revenue growth rate for greenhouse gas reduction solutions is expected to exceed 60%, driving overall performance improvement.
* This article has been translated by AI.
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