[Edaily Reporter PARK MIN ] On the 28th, SKSecurities maintained its “Buy” rating on SEOJIN SYSTEM CO., LTD(178320), noting that the company has established itself as a key player in the global artificial intelligence (AI) infrastructure supply chain and is expected to see a significant earnings turnaround in the second half of the year. The firm raised its target price by 27.3%, from 55,000 won to 70,000 won. This represents an upside potential of 117.7% compared to the previous trading day’s (September 23) closing price of 32,150 won.

Na Seung-doo, an analyst at SKSecurities, stated in a report published today, “All uncertainties regarding the Vietnam subsidiary, which had been raised through regulatory filings and media reports, have been resolved, and the strong profit-generating capacity of the semiconductor equipment division is aligning with the earnings recovery in the energy storage system (ESS) business segment.” He added, “As the domestic stock market has emerged from an overall correction phase and individual uncertainties have been dispelled, it is now time for a stock price revaluation driven by the recovery in profitability.”

SKSecurities ( SEOJIN SYSTEM CO., LTD(178320)) expects the company to begin reaping the full benefits of the global expansion of AI infrastructure. Hydrogen fuel cells, which have emerged as a key power source for AI data centers, are seeing concrete discussions on long-term contract manufacturing supply agreements driven by a surge in orders from major clients. Additionally, the company’s U.S. supply line has begun shipments, and analysts predict this will expand its contribution to year-end earnings.

The ESS division, which had been somewhat sluggish in the first half, has also returned to a normal growth trajectory. With operations at the Vietnam production base and the U.S. local assembly line ramping up in earnest starting in the third quarter, shipment volumes to major global customers are recovering. It is anticipated that earnings delayed in the first half will be reflected sequentially from the second half through next year, driving a “weak first half, strong second half” earnings trend.

Furthermore, the profit-generating capabilities of the semiconductor equipment and energy peripheral equipment business segments are becoming increasingly prominent. Texon, a subsidiary responsible for the semiconductor equipment business, posted cumulative first-half revenue of 429.5 billion won, a 96.0% surge compared to the same period last year. SKSecurities forecasts that SEOJIN SYSTEM CO., LTD(178320)’s annual semiconductor segment revenue will reach 821.2 billion won this year, representing significant year-over-year growth.

SKSecurities projected SEOJIN SYSTEM CO., LTD.’s third-quarter consolidated revenue at 501.5 billion won and operating profit at 23.6 billion won, anticipating a return to profitability. For the fourth quarter, it forecast revenue of 621.2 billion won and operating profit of 39.4 billion won, predicting that the improvement in performance would expand further.

Annual revenue for 2026 was estimated at 1.813 trillion won, with operating profit at 10.7 billion won. In 2027, the company is expected to achieve revenue of 2.2657 trillion won and operating profit of 196.9 billion won, marking its best-ever performance.

Analyst Na Seung-doo stated, “We calculated the target price at 70,000 won by changing the valuation benchmark from 2026 earnings per share (EPS) to the projected 2027 EPS (2,277 won) and applying a 12-month forward price-to-earnings ratio (PER) of 30 times, based on the average of four global die-casting and EMS competitors,” adding “Given that the stock’s upside potential has already been sufficiently validated in the first half of the year, we expect a strong rebound driven by the recovery in earnings,” he said.