Wonik IPS, a South Korean semiconductor equipment manufacturer, saw its stock price rise 12.56% over four trading days ending on the 16th, closing at 140,700 won compared to 125,000 won on the 10th. The rally occurred despite projections that the company's Q2 operating profit will decline 41% year-over-year to 21.6 billion won, as investors focused instead on the company's order backlog reaching approximately 400 billion won at the end of Q1 and analyst forecasts of a sharp profit recovery starting in Q3. Wonik IPS supplies chemical vapor deposition (CVD) and atomic layer deposition (ALD) equipment to major semiconductor manufacturers including Samsung Electronics and SK Hynix, operating in a sector where order intake precedes revenue recognition by several quarters due to equipment production and installation lead times.
Most of the stock gains concentrated on the 15th, when shares jumped 12.27% in a single session to 142,700 won. The stock retreated 1.40% on the 16th but retained most of the week's advances.
Wonik IPS Order Backlog Reaches 400 Billion Won at Q1 End
The company's order backlog surged to approximately 400 billion won at the end of Q1, up from around 300 billion won at the end of the previous year, according to SK Securities. This substantial increase in unfilled orders over a single quarter heightened visibility for second-half earnings improvement.
Institutional investors net purchased approximately 57.9 billion won worth of Wonik IPS shares on the 14th, ranking first in KOSDAQ net buying. The buying activity reflected bets on second-half order intake and potential capacity expansion next year rather than waiting for near-term earnings confirmation.
Q3 Operating Profit Projected at 83 Billion Won
SK Securities forecast Wonik IPS Q2 revenue at 240.4 billion won, down 1% year-over-year, with operating profit of 21.6 billion won representing a 41% decline from the same period last year and falling 18.5% short of market consensus.
The earnings trajectory shifts dramatically in Q3. Equipment orders secured in Q1 are expected to translate into revenue after production and delivery, driving Q3 revenue to 438 billion won—an 82% increase from Q2. Operating profit is projected at 83 billion won, a 285% quarter-over-quarter surge representing approximately four times the Q2 level.
For the full year, SK Securities projects revenue of 1.327 trillion won (up 46% year-over-year) and operating profit of 198 billion won (up 168%). Next year's operating profit is forecast to reach 327 billion won, a further 65% increase.
Customer Base Expands Beyond DRAM to NAND and Foundry
Domestic memory manufacturers' DRAM capacity expansion is expected to reach 150,000 wafers per month by 2028, with next year's investment potentially doubling from this year's levels, according to securities firms. Equipment orders are also resuming in the NAND segment after a period of reduced investment.
Wonik IPS's foundry-related revenue is projected to reach approximately 153 billion won this year as first-phase equipment installation at the Taylor, Texas facility concludes in the second half. The addition of foundry recovery to the company's memory-focused revenue structure broadened its earnings growth path.
China emerged as another variable. Wonik IPS's equipment supply to CXMT, China's largest DRAM maker, is recovering. CXMT plans to raise 29.5 billion yuan through a Shanghai stock exchange listing at the end of this month. If the IPO proceeds fund capacity expansion, equipment suppliers including Wonik IPS could see increased order opportunities.
SK Securities Raises Target Price to 190,000 Won
SK Securities raised its target price for Wonik IPS from 180,000 won to 190,000 won, applying a target price-to-earnings ratio of 30 times to the projected 2027 earnings per share of 6,456 won.
Lee Dong-ju, researcher at SK Securities, stated: "With order backlog surging to 400 billion won at the end of Q1, the company will enter a phase where results become tangible starting in Q3. Operating profit of 198 billion won this year is expected to increase 65% to 327 billion won next year."
FAQ
What drove Wonik IPS stock price increase over four trading days ending on the 16th?
The stock rose 12.56% primarily due to the company's order backlog reaching approximately 400 billion won at the end of Q1 (up from around 300 billion won at the previous year-end) and analyst projections of Q3 operating profit surging to 83 billion won—four times the Q2 level—as orders convert to revenue after production and installation.
How much did SK Securities raise its target price for Wonik IPS?
SK Securities raised its target price from 180,000 won to 190,000 won, based on applying a target price-to-earnings ratio of 30 times to the projected 2027 earnings per share of 6,456 won. The firm projects operating profit of 198 billion won this year (up 168% year-over-year) rising to 327 billion won next year (up 65%).
