[Click e-Stock] "Probe Card Supply in Focus... TSE Target Price Up"

Shinhan Investment Corp. on the 25th raised the target price for TSE to 65,000 KRW, up 14% from the previous target, stating that "demand from customers for NAND probe cards (components connecting semiconductor chips and test equipment) has entered an improving phase. Global demand for DRAM probe cards is also expected to expand." The buy rating was maintained.

On the same day, researcher Oh Kang-ho from Shinhan Investment Corp. said, "TSE's expected PER (price-to-earnings ratio) for this year is 10.8 times, undervalued compared to the industry-leading group average of 27.9 times in the socket sector. Product level-up is a factor for valuation (stock price relative to corporate value) reassessment," he stated.

Operating profit in the fourth quarter of last year recorded 13.7 billion KRW, a remarkable 1389% growth compared to the same period last year. Expansion of sales in DRAM probe cards led the performance growth. The sales growth rate of probe cards was 109% last year (due to the addition of DRAM) and is expected to be 23% this year (NAND and DRAM).

Researcher Oh analyzed, "By expanding the product portfolio of DRAM probe cards, growth momentum was created. This is the reason for performance and valuation reassessment," adding, "Existing products also show positive growth resilience compared to last year."

He also noted, "The operating leverage effect due to the expansion of probe card sales is another point to watch," and added, "We expect consolidated operating profit of 52.1 billion KRW and an operating margin of 14% this year."