[Click eStock] "Isu Petasys, Earnings Improvement Expected... Target Price Up"

On the 4th, BNK Investment & Securities anticipated an improvement in performance for Isu Petasys due to an increase in production capacity (CAPA). The investment opinion was maintained as 'Buy,' and the target price was raised by 36% from the previous 39,000 KRW to 53,000 KRW.

Minhee Lee, a researcher at BNK Investment & Securities, projected Isu Petasys' consolidated operating profit for the first quarter of this year to be 16 billion KRW, exceeding the market expectation of 15.2 billion KRW. He explained, "Although depreciation expenses are expected to increase by about 10 billion KRW with the operation of the 4th factory starting in July, an operating leverage effect is anticipated from the fourth quarter when full operation begins."

He added, "As the investment cycle for AI server infrastructure by global big tech companies continues, sales to the major client, North American company G, for data centers grew by 142% compared to last year, and double-digit growth is expected again this year. The rising proportion of high-value AI accelerator models and switch products will continue, leading to improved profitability."

The researcher stated, "Profitability will peak in the first half of 2025," and added, "Before the performance improvement from the increased CAPA of the 4th factory, the stock price will rise first following the trend of increased orders."