[Click e-Stock] "TLB Enters Memory and Storage Upcycle... Target Price Raised"

On October 13, Meritz Securities analyzed that TLB is expected to show a mid- to long-term upward trend, as the company is entering a visible upcycle centered on memory and storage. The investment opinion was maintained at 'Buy,' and the target price was raised to 70,000 won.

Yang Seungsoo, a researcher at Meritz Securities, stated, "The current memory upcycle is a 'P cycle' phase, characterized by unpredictable, stepwise demand increases centered on data centers, combined with conservative investment stances by memory companies. TLB stands out among substrate manufacturers, as it has the highest proportion of sales from memory and server applications, and has already secured high profitability through selective orders based on technological superiority."

The company is also expected to benefit from the BVH (Buried Via Hole) process. The BVH process involves bonding two substrates to simultaneously achieve a high-layer structure and high-density circuitry. TLB is currently applying this process to its main products, the DDR5 6400 and 7200, as well as memory modules for eSSD.

He added, "In the era of Agentic RAG, the importance of memory bandwidth and storage device performance is being highlighted even in general servers, as they are required to handle real-time Q&A and continuous inference for large-scale models. The adoption of high-performance DDR5 is expected to expand to alleviate computational bottlenecks, and the shortage of HDDs for data caching and storage is likely to drive a surge in demand for high-speed alternatives such as eSSD."

He continued, "For TLB, this trend means that demand for substrates using the BVH process will continue to expand, resulting in a continuous improvement in the product mix. At the same time, a structurally tight supply environment will persist due to production capacity loss (Capa-loss). Although there is a possibility of a short-term correction as the stock price enters an overheated phase, the entry into an upcycle centered on memory and storage is becoming increasingly visible, so a mid- to long-term upward trend is expected."