[Click eStock] "Pharmicell Enters a Different Level of Growth Trajectory"

On the 4th, DS Investment & Securities analyzed Pharmicell, stating that "sales of resin and curing agents used in CCL for AI accelerators are expected to surge," and "the performance slope this year is expected to be steep." They maintained a buy rating and a target price of 15,000 KRW.

Pharmicell mainly generates sales from its bio-chemical business, including chemical materials for electronic materials and delivery agents for protein-based new drugs. The bio-medical business, such as stem cell therapeutics, accounts for a negligible portion of sales (estimated at 3.1% of total sales last year).

In particular, the resin and curing agent business supplied to Doosan Electronics BG is experiencing rapid growth. Both materials are used in CCL for AI accelerators.

CCL is an electronic circuit board made by bonding thin copper foil with insulating resin and reinforcing materials. Resin serves as the insulating layer and adhesive. Especially in high-speed signals such as AI accelerators, insulation must be very high to prevent signal interference and current leakage. At this time, high-quality curing agents play a role in transforming the resin into a dense structure during the curing process, improving insulation and increasing heat resistance that prevents deformation at high temperatures. Therefore, special curing agents with high heat resistance and thermal stability are essential for CCL used in AI accelerators and 5G.

Pharmicell has jointly developed these high-performance resins and curing agents with Doosan Electronics BG for over 10 years. They are used for CCL in NVIDIA’s Blackwell.

DS Investment & Securities estimated Pharmicell’s resin and curing agent-related sales at approximately 29.7 billion KRW last year and forecast rapid growth to around 110 billion KRW this year.

Pharmicell’s provisional results based on individual financial statements announced on the 10th of last month showed sales of 64.9 billion KRW and operating profit of 4.8 billion KRW. DS Investment & Securities expects consolidated sales of 134.5 billion KRW and operating profit of 35 billion KRW this year.

Analyst Kim Suhyun analyzed, "Compared to CCL-related or upstream companies such as Doosan, NVIDIA, and EMC, this year’s performance slope is the steepest."