[Click eStock] TSE, Q1 Non-Memory Socket Orders Increase... High-Growth Potential Product Line

[Asia Economy Reporter Hwang Yoon-joo] Shinhan Financial Investment maintained a 'Buy' rating and a target price of 96,000 KRW for TSE on the 25th, citing an increase in non-memory socket orders from overseas clients.

Oh Kang-ho, a researcher at Shinhan Financial Investment, stated, "The socket growth story is expected to continue in 2022," adding, "The demand for sockets from major domestic and international clients is continuing into the first quarter."

Researcher Oh explained, "The expansion of production capacity starting in 2022, following equipment investments in the socket sector in 2021, is also positive," and forecasted, "Socket sales in 2022 are expected to reach 66.5 billion KRW (+73%)."

He evaluated, "2022 is a period when valuation rerating is expected due to the expansion of non-memory sales."

Researcher Oh analyzed, "In the past, domestic IT companies experienced product quality expansion → client base expansion → valuation rerating," and noted, "Socket sales have been steady with 24.6 billion KRW (+40%) in 2020 and 38.5 billion KRW (+57%) in 2021, reflecting consistent client demand."

He added, "It is judged to be a key product group capable of high growth and premium pricing."