[Alpha Biz= Paul Lee] SEOUL, June 20, 2025 — DB Financial Investment has reiterated its ‘Buy’ rating and KRW 26,000 target price for Wonik Materials, projecting that the company’s earnings in 2025 will follow a “low-to-high” trajectory through the year.
Analyst Seungyeon Seo explained, “As memory semiconductor market conditions improve and seasonal demand picks up in the second half, utilization rates at semiconductor clients are expected to rise.” However, he noted that the ramp-up in NAND operations—initially expected to accelerate in the second half—may proceed more slowly than anticipated.
DB estimates Wonik Materials’ full-year revenue at KRW 320.6 billion, up 3% year-on-year, with operating profit forecast at KRW 63.7 billion, a 23% increase.
“Profitability is improving due to cost reductions,” Seo added, “and we highlight the long-term growth potential from expanding the product range for PF3 gas supplied to North American clients.” At the current share price, the stock trades at a forward P/E of just 5.2, signaling undervaluation, he said.
For Q2 2025, DB expects revenue of KRW 78.3 billion, up 2% year-on-year, and operating profit of KRW 14.9 billion, down 7%, largely due to unfavorable foreign exchange rates offsetting gains from improved DRAM and foundry utilization and new PF3 shipments to U.S. clients.
Seo concluded, “Despite the slower-than-expected NAND ramp-up, we view Wonik Materials’ fundamentals and valuation as attractive in the mid-to-long term.”
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
