[Market Focus] TELB Surges Over 14% on SOCAMM Supply Chain Shift Benefits

TELB's stock price is surging amid the emergence of the SOCAMM (System on Chip Advanced Memory Module) market led by Nvidia. According to analysts, as the SOCAMM supply chain shifts from being centered on Micron to domestic memory companies such as SK Hynix, TELB is expected to experience rapid growth.

As of 3:25 p.m. on September 22, TELB was trading at 46,750 won, up 6,000 won (14.72%) from the previous trading day.

On this day, Meritz Securities maintained its 'Buy' rating on TELB, stating, "As the SOCAMM supply chain transitions to focus on domestic memory companies, TELB will benefit further," and raised its target price from 41,000 won to 49,000 won.

Yang Seungsoo, a researcher at Meritz Securities, commented, "Next year, SOCAMM sales are expected to reach 51.1 billion won, a 964.9% increase year-on-year," adding, "Although TELB's share within Micron's SOCAMM business was low, it holds a relatively high share in SOCAMM projects involving domestic memory companies."

The recent disclosure by TELB regarding a 30 billion won increase in short-term borrowings was also interpreted as a positive signal. This funding is intended for investment in its Vietnamese subsidiary and is seen as a preemptive capital raise to expand capacity in response to a surge in downstream demand.

Researcher Yang noted, "Due to the current surge in downstream demand, TELB has been operating at full capacity since the second quarter, and customer orders are exceeding production capabilities. The upcoming expansion will be focused on alleviating bottlenecks in high-end substrate production. Even with the significantly upgraded SOCAMM shipment outlook, TELB is expected to have sufficient capacity to respond."