[Click eStock] "Isu Petasys Expected to Grow Earnings with Increased Multi-layered Product Share... Target Price Raised"

Target Price Raised from 71,000 Won to 81,000 Won

On September 9, NH Investment & Securities raised its target price for Isu Petasys from 71,000 won to 81,000 won, forecasting earnings growth driven by an increased proportion of multi-layered products. The investment opinion remains 'Buy'.

Hwang Ji-hyun, a researcher at NH Investment & Securities, stated, "The upward revision of the target price is due to an increase in our blended average selling price (ASP) estimates, reflecting the accelerating expansion of multi-layered products amid the recent trend toward higher-spec substrates." She explained, "The unit price per square meter for multi-layered substrates is twice as high as that of existing products. With sequential capacity expansions, the proportion of these products is expected to rise from 20% in the first half of next year, to 50% in the second half, and to 70% by the end of 2027. The blended average selling price is projected to grow by more than 20% annually."

The expansion for multi-layered substrate production is reportedly progressing smoothly. Hwang added, "Isu Petasys plans to invest in processes that typically create production bottlenecks-specifically 'lamination-drilling-plating-filling'-in three phases through the end of 2027. Multi-layered substrates require at least 40 layers, a thickness of 0.5T, and an aspect ratio (A/R) of 22 to 1 or higher, making production highly challenging. Nevertheless, Isu Petasys is already supplying multi-layered substrates for network switches, and yields are stabilizing rapidly."

Google has announced plans to supply its Tensor Processing Unit (TPU) chips to external data centers, and OpenAI has also signaled the launch of its own chips, fueling expectations for growth in the application-specific integrated circuit (ASIC) market. Hwang predicted, "Isu Petasys is currently conducting sample tests with major clients, and if mass production sales begin in earnest between 2026 and 2027, the company is expected to maintain a steep growth trajectory."