[Edaily Reporter Kim Hyung-il ] HANWHA INVESTMENT & SECURITIES projected that Justem.Co.,Ltd.(417840)will continue to see earnings growth driven by expanded equipment supply to major memory manufacturers, following second-quarter operating profit that significantly exceeded market expectations. The firm maintained its “Buy (BUY)” investment rating and target price of 27,000 won.

On the 19th, Park Jun-young, an analyst at HANWHA INVESTMENT & SECURITIES, stated, “Justem.Co.,Ltd.’s second-quarter revenue reached 29.3 billion won, a 159% increase year-over-year and a 66% increase quarter-over-quarter, while operating profit reached 9.3 billion won, up 346% and 128%, respectively.” He added, “Revenue and operating profit exceeded the consensus estimates by 13% and 43%, respectively.”

The growth in second-quarter earnings was driven by expanded sales to Micron. Sales to Micron totaled 27.1 billion won in the first half alone, and it was noted that shipment volumes to the Singapore fab and the pace of second-generation equipment deliveries are increasing faster than initially expected. Sales to SamsungElectronics(005930)and #SK hynix were also analyzed to have continued their robust trend.

Analyst Park explained, “We project that Justem.Co.,Ltd.’s operating profit will increase more than tenfold in just two years, from 4.9 billion won in 2025 to approximately 50 billion won in 2027,” adding, “As the memory market’s supply shortage persists and it remains difficult to significantly expand capacity in the short term, the importance of improving yield is growing.”

He continued, “All three integrated device manufacturers (IDMs) are stepping up their investments in yield improvement, and as processes advance to the cutting edge, the importance of particle and void management is increasing, leading to rapid adoption of second-generation equipment.”

By customer, Micron accounts for approximately 51% of Justem.Co.,Ltd.’s revenue, recording 27.1 billion won in sales in the first half alone. Sales to SamsungElectronics account for about 20%, with previously ordered volumes for the Pyeongtaek facility expected to be reflected starting in the third quarter, while sales to SK hynix account for about 24%, with equipment supplied for both DRAM and NAND.

Analyst Park added, “The volume of orders from Micron’s Singapore fab and the pace of second-generation equipment supply are increasing faster than expected, and at SamsungElectronics and SK hynix, the scope of application for new processes and second-generation equipment is expanding based on existing supply.” He further noted, “The company is also in the process of expanding its customer base in Greater China and with Taiwan’s TSMC.”