Hyundai Motor Securities has raised its target price for semiconductor equipment company DI from 57,000 won to 60,000 won while maintaining a "buy" rating. The increase in profitability is attributed to expanded investments in general memory and the establishment of new packaging factories.
Yoon Dong-wook, a researcher at Hyundai Motor Securities, stated, "For the second consecutive quarter, the company has recorded an operating profit margin exceeding 20%, demonstrating improved profitability." He added that the expansion of general memory investments and the establishment of packaging factories are expected to continue increasing the supply of memory package testers.
DI's revenue for the third quarter reached 217.7 billion won, a 99.6% increase compared to the same period last year, while operating profit surged 493.1% to 59.3 billion won. The operating profit margin stood at 27.3%, significantly surpassing market expectations of 196.1 billion won in revenue and 44 billion won in operating profit.
The strong performance was influenced by increased equipment supply from the headquarters and early deliveries of HBM-related equipment from its subsidiary, Digital Frontier. DI's headquarters experienced a surge in equipment supply in the second half of the year, resulting in operational leverage, while Digital Frontier reportedly supplied a large quantity of wafer testers to HBM clients that were originally scheduled for delivery in the fourth quarter.
As a result, Hyundai Motor Securities has also revised its annual performance outlook for this year. It now expects revenue to reach 607.1 billion won, a 40.4% increase from the previous year, and operating profit to rise to 130 billion won, a 256.0% increase. The anticipated operating profit margin is 21.4%.
Yoon projected that for 2027, consolidated results would show revenue of 771.5 billion won and operating profit of 167.7 billion won, representing increases of 27.1% and 29.1%, respectively, compared to the previous year. He concluded that the company's profit capacity has significantly improved, with operating profit margins expected to exceed 20% again next year.
Yoon Dong-wook, a researcher at Hyundai Motor Securities, stated, "For the second consecutive quarter, the company has recorded an operating profit margin exceeding 20%, demonstrating improved profitability." He added that the expansion of general memory investments and the establishment of packaging factories are expected to continue increasing the supply of memory package testers.
DI's revenue for the third quarter reached 217.7 billion won, a 99.6% increase compared to the same period last year, while operating profit surged 493.1% to 59.3 billion won. The operating profit margin stood at 27.3%, significantly surpassing market expectations of 196.1 billion won in revenue and 44 billion won in operating profit.
The strong performance was influenced by increased equipment supply from the headquarters and early deliveries of HBM-related equipment from its subsidiary, Digital Frontier. DI's headquarters experienced a surge in equipment supply in the second half of the year, resulting in operational leverage, while Digital Frontier reportedly supplied a large quantity of wafer testers to HBM clients that were originally scheduled for delivery in the fourth quarter.
As a result, Hyundai Motor Securities has also revised its annual performance outlook for this year. It now expects revenue to reach 607.1 billion won, a 40.4% increase from the previous year, and operating profit to rise to 130 billion won, a 256.0% increase. The anticipated operating profit margin is 21.4%.
Yoon projected that for 2027, consolidated results would show revenue of 771.5 billion won and operating profit of 167.7 billion won, representing increases of 27.1% and 29.1%, respectively, compared to the previous year. He concluded that the company's profit capacity has significantly improved, with operating profit margins expected to exceed 20% again next year.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.