Shinhan Investment Corp. analyzed on the 26th that ISC will enter a high-growth phase next year after hitting a performance bottom this year. They newly issued a 'Buy' investment rating and set a target price of 130,000 KRW.
Shinhan Investment Corp. identified ISC as a beneficiary of the emerging artificial intelligence (AI) market. Kangho Oh, a researcher at Shinhan Investment Corp., stated, "While the existing pogo market is suitable for small-lot production of various products, silicone rubber has technical advantages favorable for large-lot production of a few product types," adding, "Due to recent IT trend changes, demand is increasing with silicone rubber pitch adaptation and durability enhancement." He further noted, "This is the background for the expansion of demand for non-memory rubber sockets, which were mainly used in R&D, to mass production applications."
He especially expected improvements in price and demand due to chip size changes during process transitions. He emphasized, "Looking at past cycles, during the process transition from DDR3 to DDR4 in 2014, we experienced price increases in sockets due to chip size changes," and added, "This is why we expect price and demand improvements with the increase in high-spec semiconductor demand and the improvement in DDR5 demand."
He said, "This is a period expected for high growth with the full-scale reflection of non-memory rubber socket customer performance," and described it as "a growth story from R&D-focused to expanded sales of mass production products." He added, "Operating profit this year is expected to be 50.2 billion KRW, down 10% from the previous year, but next year, operating profit is projected to increase by 61% compared to this year, reaching 80.6 billion KRW."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
