[Edaily Reporter Kwon Oh Seok ] IBK Investment & Securities announced on the 10th that it is initiating coverage of TES CO., LTD.(095610)with a “Buy” rating and a target price of 210,000 won.

TES CO., LTD. is a manufacturer of front-end process equipment for which demand increases as semiconductor prices rise. Kang Min-gu, an analyst at IBK Investment & Securities, stated, “The order backlog, which has shown explosive growth since 2026, will be the driving force behind future stock price gains,” adding, “While the largest order backlog over the past 10 years was only 86.9 billion won, it reached 206.9 billion won in the second quarter of this year, setting a new all-time high.”
He added, “The earnings and stock prices of semiconductor materials, parts, and equipment companies tend to move in tandem with order backlogs. Considering future plans for new fab expansions and equipment certification schedules, we anticipate further growth in the order backlog.”
He explained, “When manufacturing NAND with 300 layers or more, wafers are exposed to lengthy etching processes. TES CO., LTD.’s ‘ACL’ (Amorphous Carbon
Layer) equipment deposits an auxiliary layer called a hard mask to ensure that the patterns on the wafer surface can withstand the etching process.”
He added, “BSD (Backside Deposition) equipment forms a support layer on the back of the wafer to prevent warping and improve yield. As the semiconductor industry has presented a roadmap for over 1,000 layers, demand for equipment is expected to continue growing in line with the trend toward higher-layer counts.”
Researcher Kang believes that this marks a turning point where the factors that had previously weighed on the stock—including concerns over declining DRAM revenue, a limited customer base, and a lack of equipment portfolio—are being resolved simultaneously. He analyzed, “DRAM revenue, which exceeded 50% for the first time in 2024, has remained stable. This is due to major customers expanding their fabs and the application of our flagship ACL equipment being extended to DRAM,” he analyzed.
The company has also begun diversifying its client base and product lines. With testing of new equipment set to conclude in the second half of the year, the product portfolio is expected to diversify. Researcher Kang added, “We expect BSD equipment to expand its applications beyond NAND to include HBM (High Bandwidth Memory) and DRAM,” and noted, “CXMT (Changxin Memory Technology), which has successfully gone public, is also expected to continue expanding its production capacity, so we anticipate regional diversification of revenue—currently concentrated in South Korea—beginning in the second half of 2026.”