[Click eStock] "Korea Circuit Undervalued Among PCB Companies"

On December 5, Daishin Securities analyzed that Korea Circuit is undervalued among domestic printed circuit board (PCB) companies. The target stock price for Korea Circuit was raised by 37.5%, from 40,000 won to 55,000 won. The investment opinion was maintained as 'Buy'.

Park Kangho, a researcher at Daishin Securities, stated, "Based on next year's expected performance, Korea Circuit's price-to-earnings ratio (PER) is 11.5 times." He added, "Compared to Isu Petasys at 39.8 times, Daeduck Electronics at 18.8 times, and Simmtech at 20.1 times based on market expectations, Korea Circuit remains undervalued."

He continued, "With flexible circuit (FC) substrates accounting for 75% of sales, and considering the increasing likelihood of supplying FC BGA for server GDDR7, SoCAMP (Nvidia), and Broadcom AI accelerator application-specific integrated circuits (ASICs), there is room for a valuation increase."

He also noted, "Korea Circuit may newly supply FC BGA for AI accelerator ASICs to Broadcom, an ASIC design company. In 2022, Korea Circuit received investment from Broadcom to build its production line, and supplied approximately 91.2 billion won worth of FC BGA through the third quarter of this year."

Park further analyzed, "Qualification testing for SoCAMP2 mass production by Micron and SK Hynix is underway. Korea Circuit has secured major global big tech companies as key clients by supplying HDI (PCB) for Apple's iPad Pro, MacBook, and Samsung Electronics' premium smartphones."