[Edaily Reporter PARK MIN ] DaishinSecurities announced on the 16th that it is raising its earnings forecast for PSK INC.(319660), driven by large-scale capital expenditures by global semiconductor manufacturers and the expected benefits from the start of operations at a new (greenfield) factory in 2027. The firm’s analysis indicates that, as growth in the semiconductor equipment sector is expected to continue through 2028, the current stock price is significantly undervalued.

The firm maintained its “Buy (BUY)” investment rating and kept its 6-month target price at 150,000 won. Based on the previous trading day’s closing price (97,800 won), the stock has upside potential of 53.4%.

In a report published today, Ryu Hyung-geun, an analyst at DaishinSecurities, stated, “PSK INC.’s third-quarter consolidated revenue surged 97% year-over-year to 205.7 billion won, and operating profit reached 67.7 billion won (operating margin of 33%), significantly exceeding market consensus (revenue of 190.6 billion won, operating profit of 56.4 billion won),” adding He explained, “Amid robust demand across the board from clients, equipment shipments exceeded expectations and successfully offset the unfavorable impact of exchange rates.”

DaishinSecurities highlighted that new orders continue to be strong, particularly for photoresist stripping (PR Strip) equipment, the company’s top-selling product globally. Accordingly, the firm raised its annual operating profit estimates for PSK INC. from 209.9 billion won in 2026 to 259.9 billion won in 2027 and 293.3 billion won in 2028.

Analyst Ryu predicted, “We are witnessing an expansion of capital expenditures (CAPEX) across the entire supply chain to resolve the extreme imbalance in memory supply and demand, and the scale of CAPEX in the South Korean memory semiconductor industry alone is expected to increase from 106 trillion won this year to over 160 trillion won by 2027.”

In particular, he predicted that the industry would benefit directly starting in 2027 as the world’s top three memory manufacturers ramp up investment in new greenfield factories.

Researcher Ryu noted, “Equipment delivery is expected to begin next March for SK hynix’s Yongin Phase 1 (Y1) facility, next June for Micron Technology’s Plant 1 in Idaho, and next July for SamsungElectronics’ Pyeongtaek Plant 5 (P5-1),” adding He emphasized, “A favorable environment is taking shape for PSK INC., which has secured supply chain exposure with all three major companies.”

The company’s valuation is also considered attractive. The current stock price stands at a 12-month forward price-to-earnings ratio (P/E ratio) of 14.1x, which is significantly lower than this year’s average (20.8x).

Analyst Ryu added, “Concerns about a slowdown in the industry due to macroeconomic, financial, and political exogenous factors are already extremely well reflected in the current stock price,” and noted, “Since the growth trend in the semiconductor equipment market is expected to continue through 2028—leaving at least two more years of profit growth—it is too early to discuss a valuation discount at this point, and a strategy of increasing exposure remains valid.”