[Edaily Reporter Lee Hye-ra] On the 11th, NH Investment & Securities projected that #LKChem would drive earnings growth this year as sales of DIS precursors—a key material for semiconductor deposition processes—increase. The firm also highlighted the localization of hafnium-based precursors, a next-generation semiconductor material, and the perovskite business, a next-generation solar cell material, as key drivers of mid- to long-term growth.

Kang Kyung-geun, an analyst at NH Investment & Securities, stated in a report released today, “This year’s earnings growth will be driven by DIS precursors, which are low-k semiconductor materials,” adding, “Related sales are expected to expand from 1.9 billion won in 2023 to 12.2 billion won last year and reach 23.1 billion won this year.”
He explained that the company signed a 21.2 billion won supply contract for DIS precursors last May and is also expected to expand supplies to customers in Taiwan and Greater China.
The company is also seen as having secured mid- to long-term growth drivers. LK Chem is currently developing perovskite materials using vacuum deposition methods in collaboration with domestic and international companies. Researcher Kang stated, “We are pursuing entry into the perovskite market, a next-generation high-efficiency solar cell material, and have secured a license to use the relevant foundational patent from the Korea Research Institute of Chemical Technology.”
Attention was also drawn to the company’s efforts to localize the entire production process for hafnium-based precursors, whose patents are set to expire at the end of this year. Hafnium is considered a key raw material for high-k materials used in advanced semiconductors. Analyst Kang explained, “The Dangjin Plant No. 3 is scheduled to house production facilities for hafnium materials and dedicated perovskite production equipment.”
NH Investment & Securities projected that LK Chem’s revenue for this year would reach 33.4 billion won, a 65.6% increase from the previous year, while operating profit would rise 141.0% to 11.0 billion won. Analyst Kang assessed, “In addition to earnings growth, the stock’s momentum is expected to strengthen as the localization of hafnium and the results of the perovskite business become more visible.”