원익IPS 본사 전경. (사진=원익IPS)

 

[Alpha Biz=(Chicago) Reporter Kim Jisun] Stock prices are falling again due to the prospect that semiconductor parts and equipment stocks will suffer from prolonged sluggish demand.

On top of that, stock prices are not expected to rebound for the time being as their second-quarter earnings are far below expectations and public sales are increasing.

As memory suppliers cut production and equipment manufacturers adjust their parts inventory for a long time, third-quarter earnings are also on the decline. According to FnGuide, operating profit for semiconductors and related equipment fell 6.2% in the third quarter from a month earlier.

According to the Korea Exchange on the 21st, semiconductor materials and equipment stocks TCK (30.4%), Wonik IPS (25.1%) and Solbrain (16.9%) were among the top stocks that had a higher proportion of public sales than the total trading volume during the five trading days from the 11th to the 18th of this month. The share of short selling of these stocks is very high compared to the KOSDAQ average of 0.5% and SK Hynix 4.9%.

Stock prices of semiconductor materials and equipment stocks began to decline as the announcement of second-quarter earnings began in earnest. This is because the company announced much lower sales and operating profit than expected by the stock market, which had already conservatively lowered earnings standards due to the growing impact of production cuts by Samsung Electronics, SK Hynix and global semiconductor companies. Despite the fall in stock prices, many semiconductor materials and equipment stocks are still subject to short stock selling as they maintain valuations that reflect the improvement in business conditions in advance.

"The overall demand for semiconductor materials has decreased due to operating rate adjustment by major customers, but their annual earnings low has been delayed from the second quarter to the third quarter due to additional cuts in NAND flash," said Korea Investment & Securities. "Samsung Electronics and SK hynix's recovery in their operating rates and foundry momentum will be linked to stock prices in the future."

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]