[Click eStock] "ISC to Record Highest Q1 Sales"

Shinhan Financial Investment Report

[Asia Economy Reporter Minji Lee] Shinhan Financial Investment forecasted on the 7th that ISC will record its highest quarterly sales in Q1 due to increased shipments of products to North American memory companies.

The expected sales for Q1 are 39.8 billion KRW, and operating profit is 12.5 billion KRW. These are estimated to grow by 8.8% and 90.5% respectively compared to the same period last year. Sales are expected to surpass the previous record high of 33.8 billion KRW. Researcher Chanwoo Kim of Shinhan Financial Investment stated, “This will be influenced by increased shipments of products to North American memory companies and increased sales of memory test sockets,” adding, “The operating profit margin is also expected to be favorable at around 30%.”

Performance is expected to improve further in the second half of the year. Annual sales are estimated at 184 billion KRW, a 27.2% increase from the previous year. Operating profit is expected to rise by 46% to 54.8 billion KRW. This is due to expected sales growth from server DDR5 products in the second half and increased shipments of non-memory products to North America.

Additionally, Prowell is expected to contribute to external growth as a consolidated subsidiary starting from Q2. Prowell is a pogo pin and socket company and a subsidiary of Solbrain Holdings. The company acquired 97.9% of Prowell’s shares for 7.4 billion KRW yesterday. Researcher Chanwoo Kim explained, “The existing sales proportion related to pogo pins was estimated to be around 20%,” and added, “Through the acquisition of Prowell, we will strengthen the competitiveness of that business division and achieve economies of scale.”

Researcher Chanwoo Kim also said, “Although the IT industry faces various uncertainties, attention is needed for companies recording strong performance,” and added, “Improved results are expected each quarter, upward revisions of future estimates are quite possible, and DDR5-related momentum in the second half is also a factor for valuation rerating.”