Jusung Engineering soars to No. 2 on KOSDAQ market cap… Valuations outpace fundamentals
Semiconductor stocks account for 17 of top 30 KOSDAQ listings… Diverging 2028 earnings forecasts
Semiconductor equipment maker Jusung Engineering surged from 57th in market capitalization at the start of the year to briefly hit No. 2 intraday on Oct. 1. While its valuation soared past Ecopro in a mere nine months, its operating profit stood at a modest 31.3 billion won last year, followed by a net loss in the first half of this year. With semiconductor-related stocks heavily populating the upper echelons of the KOSDAQ, analysts argue a reality check is needed for corporate valuations running well ahead of actual earnings.
Back in May, Lee Jae-man, head of global investment analysis at Hana Securities, pointed to SK hynix’s market cap surpassing that of Samsung Electronics as a classic warning sign of a bull market overheating. He underscored that expectations for specific companies had risen to such heights that even market cap rankings were being upended. Jusung Engineering’s dramatic ascent has similarly sparked debate over how heavily speculative future earnings have been priced into valuations.
From 57th to No. 2: The Meteoric Rise of ‘Jusung Jeonha’
On Oct. 1, Jusung Engineering briefly eclipsed Ecopro during trading to seize the No. 2 spot on the KOSDAQ by market capitalization, boasting a valuation of 11.23 trillion won. Fueled by skyrocketing expectations for semiconductor equipment suppliers, retail investors even coined the affectionate moniker ‘Jusung Jeonha’ (His Highness Jusung).
This outperformance is hardly isolated. While not a single semiconductor stock ranked among the top 10 KOSDAQ companies by market cap on the first trading day of the year, that number climbed to six by early October. As of Oct. 19, Korea Exchange (KRX) data showed four semiconductor names—Jusung Engineering, EO Technics, Wonik IPS, and Leeno Industrial—firmly entrenched in the top 10.
Widening the scope to the top 30 companies reveals 17 semiconductor-related names, maintaining the high concentration seen earlier this month. Although a few heavyweights have slipped from the absolute top tier, semiconductor plays still account for over half of the top 30 KOSDAQ listings.
On Oct. 19, Jusung Engineering closed at 209,500 won, placing it fourth with a market cap of 9.74 trillion won—down roughly 1.49 trillion won from its intraday peak of 11.23 trillion won on Oct. 1.
The stock’s meteoric rise was propelled less by current earnings and more by rosy expectations of surging future demand for chipmaking gear. SK hynix’s capacity expansions, aggressive facility investments by Chinese memory makers, and rising demand for next-generation atomic layer deposition (ALD) equipment have combined to unlock fresh order pipelines for the company.
As semiconductor fabrication processes grow increasingly intricate, the market has upgraded its valuation of the firm’s technological moat, given the rising indispensability of high-performance deposition equipment. However, translating a client’s facility investment plans into actual equipment shipments and bottom-line growth remains a time-intensive process.
Lofty 10-Fold Growth Expectations and Diverging Forecasts—Including Tesla Scenarios
Despite posting an operating loss of 5.6 billion won in the first half of this year, securities brokerages have penciled in dramatic earnings recoveries for Jusung Engineering by 2028. In an August report, LS Securities projected the company’s 2028 operating profit at 316.4 billion won—roughly ten times its earnings last year. Backed by expanded semiconductor equipment sales and eased fixed-cost burdens, the firm’s operating margin is forecast to swell to 40.1%.
In contrast, BNK Investment & Securities offered a more conservative outlook in June, estimating 2028 operating profit at 178 billion won with an operating margin of 24.6%. The gap between the two brokerages' operating profit forecasts stands at 138.4 billion won, a divergence of roughly 1.8 times.
While the reports differ in publication timing and underlying business assumptions, their profitability projections for the exact same company in 2028 vary wildly.
Notably, LS Securities assigned a valuation of approximately 4.2 trillion won not only to semiconductor equipment but also to new solar energy ventures. This valuation relies on the assumption that Jusung Engineering will exclusively supply all equipment required for potential new solar manufacturing capacity that Tesla might build down the road. Rather than relying on confirmed contracts, the brokerage factored speculative business opportunities directly into the corporate valuation.
Meanwhile, BNK Investment & Securities maintained a ‘Hold’ rating, acknowledging the company's growth potential while citing valuation friction. Its target price at the time was 190,000 won, trailing the Oct. 19 closing price of 209,500 won.
Both brokerages agree on the long-term growth tailwinds stemming from expanded semiconductor facility investments. Yet, disparate assumptions regarding order volumes and profitability have yielded drastically wide gaps in their 2028 operating profit forecasts.
Soaring Valuations, Persistent Earnings Gap
Jusung Engineering’s climb to No. 2 in market cap means it trails only Alteogen in commanding the highest corporate value on the KOSDAQ. Yet a side-by-side comparison with KOSDAQ leader Alteogen highlights a stark divergence in their underlying earnings foundations.
Last year, Alteogen posted an operating profit of 106.9 billion won—more than triple Jusung Engineering’s 31.3 billion won. The earnings gap widened further in the first half of this year, with Alteogen logging an operating profit of 73.5 billion won while Jusung Engineering slipped into a 5.6 billion won operating loss.
This earnings disparity persists in 2028 projections. The consensus estimate among brokerages for Alteogen’s operating profit stands at 578.5 billion won, roughly 1.8 times higher than LS Securities’ forecast for Jusung Engineering. As MSD commercializes Keytruda SC, Alteogen is poised to harvest royalty streams tied directly to commercial sales. By contrast, Jusung Engineering must actively convert projected chip investment demand into concrete equipment orders and profit growth.
Admittedly, drawing a direct comparison via operating profit alone is challenging given the fundamentally different business models of a biopharmaceutical platform developer and a semiconductor equipment maker. Jusung Engineering has undoubtedly earned recognition for its next-generation deposition technologies and expanding global client roster. Yet, with future growth expectations already baked into its market cap, executing on earnings to justify those valuations is now paramount.
Jusung Engineering’s rapid ascent from 57th to No. 2 in just nine months underscores the intense market fervor directed at KOSDAQ semiconductor shares. Although it slipped to fourth place on Oct. 19, the broader trend—with semiconductor-related names making up 17 of the top 30 listings—remains intact. Whether Jusung Engineering’s breathtaking rally marks the definitive peak of the tech and parts supplier frenzy remains to be seen. Ultimately, the market’s verdict will hinge on how effectively future orders and earnings can justify its lofty valuation.
