[Edaily Reporter Hyera Lee ] On the 23rd, KIWOOM Securities stated regarding WOT.CO.,LTD.(396470), “As earnings are returning to normal following the resumption of investment by semiconductor clients, additional growth is also expected through the acquisition of overseas clients.”

Oh Hyun-jin, an analyst at KIWOOM Securities, noted in a report released that day, “Although earnings were sluggish due to the recent decline in investment by semiconductor clients, we expect a rebound in earnings driven by the resumption of client investments and the acquisition of overseas clients,” adding, “The company is expected to move beyond normalization and enter a growth phase.”
WOT.CO.,LTD. is a manufacturer of environmental control equipment for semiconductor and display processes, with its flagship product being THC (ultra-precision temperature and humidity control equipment). Analyst Oh explained, “WOT.CO.,LTD. has successfully localized its THC technology for major domestic semiconductor clients,” adding, “The market is an oligopoly with limited participants due to high technological barriers.” He further analyzed, “In particular, in semiconductor photolithography processes, temperature and humidity control directly impact productivity, making ultra-precision control technology critically important.”
Earnings are expected to show signs of improvement starting in the second quarter. In the first quarter, WOT.CO.,LTD. recorded revenue of 4.3 billion won and operating profit of 1.0 billion won, down 6% and 7%, respectively, from the same period last year. However, Researcher Oh assessed, “This was due to a focus on development and order acquisition activities and represented a temporary impact ahead of full-scale operations.”
A full-scale rebound in earnings is projected to begin in the second quarter. Analyst Oh stated, “We understand that utilization rates have been gradually rising since the start of the second quarter,” adding, “While the outlook for medium- to long-term orders is limited due to the impact of short-term deliveries, a ‘weaker first half, stronger second half’ earnings pattern is expected thanks to favorable conditions in the Chonbang market.” KIWOOM Securities projected that WOT.CO.,LTD. would return to profitability in the second quarter, recording revenue of 7 billion won and operating profit of 1.6 billion won.
KIWOOM Securities projected that WOT.CO.,LTD. will post revenue of 25.8 billion won and operating profit of 6.0 billion won this year. These figures represent year-over-year increases of 70% and 141%, respectively.
The firm also identified overseas expansion as a new growth driver. Analyst Oh said, “We are focusing on the company’s overseas expansion efforts as a step toward further growth,” adding, “We are closely watching the outcomes of ongoing discussions with a Taiwanese company.” He continued, “We expect equipment test results to be released within the year, and we believe that fourth-generation energy-saving technologies will be viewed favorably by overseas clients during their equipment evaluations,” adding, “In China, however, additional growth factors are limited due to intensifying competition.”