[Click e-Stock] "Isu Petasys, Ongoing Shortage in Market Conditions"

On May 15, SK Securities analyzed that Isu Petasys achieved a surprise performance in the first quarter of this year. Isu Petasys recorded an operating profit of 47.7 billion KRW in the first quarter of this year, which is an increase of 107% compared to the same period last year.

Park Hyungwoo, a researcher at SK Securities, explained, "Three months ago, the average estimate among securities firms was 35 billion KRW," and added, "The company's average selling price (ASP) rose by 13% compared to the previous quarter." He continued, "This was due to an increase in the supply of high-margin network equipment substrates to global platform clients," and further stated, "Network equipment substrates have a supply price that is up to more than 100% higher than that of artificial intelligence (AI) substrates."

He also emphasized, "The company is still unable to meet supply demand for some North American clients," and added, "In the past, the Chinese subsidiary was responsible for producing low value-added substrates, but now it has started producing high-end substrates for global clients."

Researcher Park estimated, "In the second quarter, operating profit is expected to reach 48 billion KRW," and analyzed, "The annual operating profit forecast for this year has been raised from the previous 175.7 billion KRW to 201.5 billion KRW."

The target stock price was raised from 59,000 KRW to 63,000 KRW.