Shinsung ENG is receiving positive evaluations from the securities industry, benefiting from semiconductor process advancement and the expansion of facility investments by its clients. In particular, as the order backlog for its cleanroom business has increased significantly, expectations for profitability improvement and a turnaround to profit in the second quarter of this year are being highlighted.

The basis for the performance improvement is evident in the order backlog. The order backlog for Shinsung ENG's Clean Environment (CE) business division was tallied at 293.5 billion won as of the first quarter of this year. This is a significant increase compared to 175.3 billion won in the same period last year, and is also a rise compared to the previous quarter's 273.1 billion won in the fourth quarter. The securities industry evaluated that the increase in this order backlog has largely alleviated previous market concerns regarding an operating loss in the first quarter.

Yuanta Securities analyzed on the 11th that as the technical difficulty of cleanrooms and HVAC systems within the semiconductor industry increases, an rise in the Average Selling Price (ASP) is expected. Furthermore, it cited the entry into the early phase of the full-scale introduction of cleanrooms in the semiconductor post-process sector as a key growth factor. Considering the time lag between receiving an order and its actual recognition as revenue, Yuanta Securities projected that a turnaround to an operating profit would be possible starting in the second quarter of this year. Additionally, it forecasted that profitability would gradually recover as the increased order backlog leads to improved future performance.

The industry analyzes that the clean environment standards for semiconductor production facilities are becoming increasingly strict due to the rising demand for artificial intelligence (AI) semiconductors and advanced packaging. As the trend of expanding facility investments by global semiconductor companies continues, the demand for high-performance cleanrooms and HVAC systems is highly likely to increase alongside the growth of advanced and post-process facilities. Consequently, expectations for benefits to related companies are growing. The securities industry predicted that Shinsung ENG could enter a performance turnaround phase based on its competitiveness in the semiconductor cleanroom business, presenting future expansions in new orders and profitability improvements as the key points to watch.

[This article was written with the assistance of AI. This article is intended to provide information for reference in making investment decisions and does not recommend the purchase or sale of specific stocks. Any losses resulting from stock investments are borne by the investor, and investment decisions must be made under sufficient review and responsibility.]