[Special Stock] Taeseong Achieves 'Record' Performance Thanks to On-Device AI... Also Developing Glass Substrate Equipment

Taeseong is showing strength. The news of achieving the highest-ever performance in the first quarter appears to be influencing the stock price.

As of 10:26 AM on the 7th, Taeseong is trading at 4,380 KRW, up 8.15% from the previous trading day.

Taeseong, a PCB automation equipment specialist company, announced that it achieved sales of 18 billion KRW and an operating profit of 2.4 billion KRW on a separate basis in the first quarter of this year.

Sales increased by 52% compared to the same period last year, and operating profit surged by 1,324%. The operating profit exceeds the total operating profit for the entire year of 2022.

Although investment was reduced last year due to contraction in the upstream industry, orders increased due to improvements in the semiconductor market, such as the expansion of mobile semiconductor demand related to on-device AI since the fourth quarter of last year. The order amount typically translates into sales within 3 to 4 months, and considering the current order backlog and business conditions, it is expected that this year's performance will also grow significantly following last year.

Taeseong is a specialized manufacturer of PCB manufacturing equipment essential for electronic components such as semiconductors, displays, and mobile devices. Based on its unique technology in PCB automation processes, it has global competitiveness and is expanding exports to countries including China and Vietnam. Major customers of Taeseong include Samsung Electro-Mechanics, LG Innotek, Daeduck Electronics, BH, SEMCO, TLB, and it continuously supplies equipment to world-leading PCB manufacturers such as Pengding and Sunnan Circuit, the global No.1 in the PCB industry.

To secure future growth engines, Taeseong is advancing a secondary battery equipment business as a new venture. It has filed a patent application for composite copper foil (anode material) copper plating equipment and completed the production of a demo device. Currently, product sample testing is underway, and test results are expected soon. The camera module parts business is also actively engaged in direct sales activities with customers, raising expectations for additional growth through sales realization in the second half of the year.

A Taeseong representative said, "We have been leading the high-performance PCB manufacturing equipment market based on differentiated technology and steady sales activities," adding, "Along with the smooth progress of the secondary battery and camera module businesses, we have started equipment development for the glass substrate business, a next-generation semiconductor substrate." He further stated, "We will strive to maximize corporate growth through new businesses alongside our core business."

IV Research expects Taeseong's performance to improve this year. They foresee that with the improvement in upstream industries such as on-device AI and data center investments, customer investments will resume, enabling the company to normalize its performance. IV Research explained that the order backlog of 36.6 billion KRW at the end of last year will be fully reflected in sales within the first half of this year.

Additionally, IV Research analyzed that Taeseong will benefit from the opening of the composite copper foil market. The market is becoming active as demand for composite copper foil increases, centered on the Chinese secondary battery market. They expect product evaluation to be completed in the second quarter of this year. Considering that it takes about 3 to 4 months from order to delivery, sales recognition is anticipated from the second half of this year. The annual production capacity is approximately 250 billion KRW in sales terms.