[Click eStock] "Leeno Industrial Expected to Deliver Strong Results in Second Half... Target Price Raised"

On September 29, Hana Securities announced that it is raising its target price for Leeno Industrial to 65,000 won, reflecting the company's acquisition of new growth drivers such as the adoption of 2-nanometer processes by mobile application processor firms and changes in packaging technology. The investment rating was maintained at 'Buy.'

Hana Securities projected that Leeno Industrial's third-quarter sales will reach 88.8 billion won, up 29% year-on-year, with operating profit expected to rise 35% to 41.5 billion won. Kim Minkyoung, a researcher at Hana Securities, explained, "After recording the highest-ever performance in the first half of the year, the company is continuing its solid performance in the second half, driven by the expanded adoption of advanced processes by mobile application processor firms."

In particular, in the test socket sector, the application of various customization options (such as air-cooling and water-cooling) has led to an increase in average selling prices, which was positively evaluated. As the number of component terminals contacted by test pins is increasing by 15-20% due to semiconductor miniaturization, the limited number of specialized test socket companies capable of responding to this trend is also expected to contribute to expanding demand.

Starting in the second half of next year, the adoption of 2-nanometer processes for mobile application processors is expected to accelerate, along with the expanded application of Wafer-Level Multi-Chip Module (WMCM) packaging technology. WMCM technology is an advanced method that connects multiple dies directly at the wafer stage, reducing signal delay and improving package area and power efficiency. The adoption of this technology is highly likely to lead to an increase in test socket prices, and a top-tier foundry is expected to establish a WMCM production line in Taiwan, securing a monthly production capacity of 50,000 units by the end of next year.

Researcher Kim assessed, "Leeno Industrial plans to more than double its production capacity compared to current facilities by relocating and expanding its production facilities by the end of 2026," adding, "This is a strategy to proactively respond to the expected increase in demand for test sockets and pins ahead of the advent of the 6G era in 2027-2028."