[Edaily Reporter Kim Kyung-eun] Daol Investment & Securities has raised its target price for #VM by 46%, from 96,000 won to 140,000 won. This decision is based on the assessment that, despite the stock price surging 182% since the start of the year, the company still trades at a lower valuation compared to its peers, and differentiated growth is expected following its entry into new processes and client bases in 2027.
Go Young-min, an analyst at Daol Investment & Securities, stated, “Based on the current stock price, the 2027 price-to-earnings ratio (PER) stands at 18x, which is significantly lower than the average 2027 PER of 30.4x for major domestic equipment manufacturers, leading to expectations that the undervaluation will be resolved.”
There are two main investment points. First, the company’s entry into the high-end segment of the poly-visual process based on new wafer test (WS) equipment. The firm noted that the outlook for field testing is positive following the completion of wafer testing at the end of the first quarter of 2027. Revenue is expected to begin in the second half of 2027.
Second, the company is entering the market with new overseas memory customers. Along with positive feedback from customers, wafer testing was completed ahead of schedule, and field testing is proceeding smoothly. It is estimated that revenue generation could begin as early as the first half of 2027.
Researcher Ko stated, “Considering the upstream market conditions and client investment plans, it is highly likely that the order volume will expand in 2027 compared to 2026. Furthermore, growth exceeding the clients’ investment trajectory is possible due to market share expansion resulting from the adoption of new processes within the clients.”
VM’s main client is #SK Hynix, with confirmed orders totaling 224.7 billion won as of the first half of this year. Order visibility has improved significantly following a series of orders from SK Hynix and SK Hynix China since January.
The possibility of favorable supply and demand inflows resulting from inclusion in the KOSDAQ 150 is expected to create a favorable environment for attempts to align valuations with other domestic equipment manufacturers. Analyst Ko stated, "Considering the favorable supply and demand effects resulting from the new inclusion in the KOSDAQ 150, this creates a favorable environment for attempts to align valuations with other domestic equipment manufacturers."
The current stock price is 85,100 won, with an upside potential of 64.5%.