[Click e-Stock] "Simmtech Target Price Raised to 65,000 Won"

"Operating Profit Expected to Surge"

On the 25th, DB Financial Investment announced that it is raising its target price for Simmtech to 65,000 won.

Jo Hyeonji, a researcher at DB Financial Investment, said, "We expect Simmtech's operating profit to surge from 12.6 billion won last year to 130.6 billion won this year." She added, "We judge that SoCAMM has the strongest position among substrate manufacturers, and we expect it to gradually enter a mass-production regime after the second quarter of this year, leading to more than tenfold year-on-year growth in annual sales. Given that there is both earnings improvement and new product momentum, but also remaining variables that need to be monitored, it is valid to approach the stock from a 'short-term buying' perspective."

Specifically, she forecast this year's first-quarter operating profit at 12.1 billion won, because she expects sales of server module PCBs and overall MSAP products to grow. She added, "Since Simmtech's utilization rate will rise stepwise each quarter this year, and the company has clearly entered a stable profit-making phase, it is possible to expect operating leverage effects proportional to the increase in orders starting from the first quarter."