[Click eStock] "PSK Holdings, HBM Supply Chain's Biggest Beneficiary... Target Price Up"

Target Price Raised from 58,000 Won to 71,000 Won

Shinhan Investment Corp. raised the target price for PSK Holdings to 71,000 KRW from the previous 58,000 KRW on the 20th, viewing it as the biggest beneficiary in the high-bandwidth memory (HBM) supply chain. The investment rating was maintained as 'Buy.'

Namgung Hyun, a researcher at Shinhan Investment Corp., stated, "With the increase in demand for artificial intelligence (AI) semiconductors, the bottleneck centered on HBM is not expected to be resolved in the short term. Among domestic HBM supply chains, PSK Holdings has the highest proportion of related sales, so the benefit intensity is inevitably strong. Aggressive expansion of HBM production capacity is expected to continue into 2025, and the growth trend in performance is likely to be sustained."

PSK Holdings recorded sales of 38.1 billion KRW in the first quarter of this year, a 4% decrease from the previous quarter, and an operating profit of 15.4 billion KRW, a 10% increase. Researcher Namgung Hyun analyzed, "Domestic sales reached 31 billion KRW, achieving about one-third of last year's annual sales in just one quarter. The leverage effect from the increase in equipment supply units, supply for HBM processes priced 3 to 5 times higher than general DRAM, and operational efficiency for cost reduction are believed to have contributed to the overall profitability improvement."

Shinhan Investment Corp. forecasts PSK Holdings' performance this year to reach sales of 167.8 billion KRW, a 77% increase from the previous year, and operating profit of 61.4 billion KRW, a 127% increase. Researcher Namgung Hyun predicted, "The growth in PSK Holdings' Descum and Reflow sales will continue due to aggressive expansion of HBM production capacity by memory manufacturers."