[Click eStock] "TSE, Entering Earnings Normalization Phase"

Daishin Securities analyzed on the 2nd that TSE will enter a performance normalization phase this year. They newly issued a 'Buy' investment rating and set a target price of 80,000 KRW.

Daishin Securities expects TSE to record sales of 280.3 billion KRW and an operating profit of 27.7 billion KRW this year. Sales are projected to increase by 12% compared to the previous year, with operating profit turning positive.

Researcher Shin Seok-hwan of Daishin Securities said, "This year's performance is expected to follow a low-high trend," adding, "This is due to the increased penetration rate of DDR5, expanded supply of non-memory interface boards, and recovery in probe card demand following the normalization of NAND inventory in the second half."

Sales and operating profit for the first quarter of this year are expected to be 64.3 billion KRW and 2.5 billion KRW, respectively. Compared to the same period last year, sales are up 44%, and operating profit has turned positive. He explained, "NAND utilization rates remain low, so probe cards are expected to follow a low-high trend," and "interface boards are expected to contribute to performance recovery."

Researcher Shin forecasted that TSE's STO-ML (SpaceTransformer Organic-Multi Layer) will generate significant sales starting next year. STO-ML is an ultra-fine pitch substrate required for vertical probe cards and test interface boards used in ultra-high-speed semiconductor testing.

He stated, "The domestic probe card market has grown centered on NAND in memory semiconductors, but domestic companies are expected to enter the DRAM probe card market this year," and added, "TSE is understood to have completed mass production preparations for STO-ML, and meaningful sales are expected to begin next year."