[Market Focus] Probe Card Business Sees Strong Growth... TSE Surges Over 10%

Shares of TSE are showing strong performance as expectations grow that the company's probe card business segment has entered a phase of structural growth this year.

As of 11:00 a.m. on January 21, TSE was trading at 73,500 won, up 7,000 won (10.53%) from the previous trading day.

On this day, LS Securities initiated coverage on TSE with a "Buy" rating and a target price of 90,000 won. Hongshik Jeong, an analyst at LS Securities, stated, "Probe card sales revenue is expected to grow significantly, rising from 80.3 billion won in 2024 to 162.1 billion won this year."

For this year's performance, the company projected record results with sales of 462.3 billion won (up 12.9% year-on-year) and operating profit of 60.5 billion won (up 38.0%, with an operating margin of 13.1%).

First, the expansion of the DRAM segment for HBM (High Bandwidth Memory) was cited as a key growth driver. Analyst Jeong noted, "In the first quarter of this year, TSE began supplying HBM4 probe cards to major domestic semiconductor companies," adding, "DRAM probe cards are priced higher than NAND probe cards, which leads to improved profitability when considering fixed costs."

He further commented, "Structural growth is underway in the core probe card business, and with the full-scale expansion of the DRAM segment this year, expectations for a revaluation of the company's valuation remain valid."