[Edaily Reporter KIM YOON-JEONG ] KIWOOM Securities projected that WONIK QnC CORPORATION(074600)will see a full-scale improvement in earnings in the second half of the year, driven by expanded sales of products to TSMC and improved utilization rates at SamsungElectronics’ foundry and NAND operations. The firm maintained its “Buy” rating but lowered the target price to 35,000 won.

On the 3rd, Park Yu-ak, an analyst at KIWOOM Securities, stated, “Third-quarter operating profit is expected to surge 327% year-over-year to 34.2 billion won,” adding, “This is due to expectations of SamsungElectronics’ expansion of its Pyeongtaek Plant 4, rising NAND utilization rates, and increased sales to TSMC.”
WONIK QnC CORPORATION’s second-quarter revenue is projected to reach 274.9 billion won, up 7% from the previous quarter and 18% year-over-year, while operating profit is expected to rise to 30.7 billion won, an increase of 41% quarter-over-quarter and 118% year-over-year.
KIWOOM Securities analyzed that improved performance would be driven by increased sales of products to TSMC and higher sales volumes to major equipment manufacturers. It also cited improved utilization rates in SamsungElectronics’ foundry and NAND businesses as positive factors. Regarding MT Holdings, which had been underperforming, the firm assessed that while revenue would remain at the previous quarter’s level, profitability is expected to improve due to changes in the product mix.
By business segment, revenue is expected to be 117.6 billion won for Quartz, 118.4 billion won for MT Holdings, 32.2 billion won for Cleaning, and 7.5 billion won for Ceramics.
The firm projected that the trend of improving performance would become even more pronounced in the third quarter. Revenue is estimated to reach 284.6 billion won, up 4% from the previous quarter and 24% year-over-year, while operating profit is projected to rise to 34.2 billion won, an increase of 11% from the previous quarter and 327% year-over-year.
Analyst Park explained, “The expansion of SamsungElectronics’ Pyeongtaek Plant 4 and the rise in NAND utilization rates are expected to drive earnings growth in the quartz division, and MT Holding—which has been experiencing a prolonged slump—is also expected to see both higher shipment volumes and improved profitability.” He added, “Earnings from TSMC through the Taiwan subsidiary are also projected to grow further, contributing to the company’s overall earnings growth in the third quarter.”
Although the stock price has recently fallen sharply, reflecting concerns about the memory semiconductor market, analysts assess that the likelihood of earnings improvement is actually increasing as customer utilization rates recover and the ramp-up schedule for new factories is being accelerated.
Analyst Park said, “The utilization rates of customers affecting WONIK QnC CORPORATION’s earnings have begun to recover, and the ramp-up schedule for new factories is also being significantly accelerated.” He added, “Recently, distribution inventories of automotive semiconductors have been normalizing, and order volumes at overseas foundry companies producing these chips are also on the rise, so we can expect MT Holdings’ earnings to improve.”