On the 15th, SK Securities analyzed that ISU PETASYS's operating profit will increase this year due to yield improvement of multilayer substrates and average selling price (ASP) increase. It adjusted the target stock price upward from the previous 59,000 won to 63,000 won, maintaining the investment opinion of 'buy.' The closing price of ISU PETASYS on the previous trading day was 43,500 won.
This year, ISU PETASYS recorded an operating profit of 47.7 billion won, a 107% increase compared to the previous year. Considering that the market expectation was 35 billion won three months ago, SK Securities explained that a shortage situation has been detected in various aspects of the business environment.
Overall ASP rose by 13% compared to the previous quarter. This is due to the increase in high-profitability substrates supplied to global platform customers. Substrates for network equipment are priced up to 100% higher than artificial intelligence (AI) substrates. The Chinese subsidiary also posted an operating profit in the 10 billion won range, achieving strong performance. However, SK Securities pointed out that ISU PETASYS is still unable to meet supply due to a lack of production capacity (CAPA) for some North American customers.
Park Hyung-woo, a researcher at SK Securities, said, 'Currently, the yield of products aimed at specific customers exceeds the mid-80% range, and the yield improvement of multilayer substrates will continue.' He noted that the expected profitability of these substrates is double compared to existing MLB. He raised the annual operating profit forecast from 175.7 billion won to 201.5 billion won.
Researcher Park stated, 'Due to product upgrades, mix improvements, and unit price increase effects, ASP increases are expected to continue in the future.' He added that with the Phase 1 operation of the 5th factory starting in the 4th quarter, an increase in shipment volume is also expected.
He also added, 'In the ongoing shortage market, the expected profitability of ISU PETASYS, which has a significant waiting demand from diverse sales channels for alternative customers, should be adjusted upward.'