The LEENO Industrial view. /Courtesy of LEENO Industrial

Samsung Securities projected on the 14th that the profitability of LEENO Industrial, which manufactures parts for semiconductor testing, will improve in the future. Samsung Securities provided a 'buy' investment opinion on LEENO Industrial and set a target price of 65,000 won, which is 29.5% higher than LEENO Industrial's closing price of 50,200 won on the 11th.

Researcher Moon Jun-ho of Samsung Securities predicted that the average selling price (ASP) of LEENO Industrial's pins and sockets will continue to rise. He implied that the current operating profit margin, which is at 40%, could increase further.

Researcher Moon said, 'As the performance enhancement process introducing advanced technology in the non-memory sector is implemented and the integration density increases, the size of the pins will also shrink, leading to a price increase.'

Researcher Moon explained that 'on-device AI', which incorporates artificial intelligence (AI) services into devices, will also present opportunities for LEENO Industrial. He noted, 'New semiconductors are inevitably developed for new applications, which is positive for LEENO Industrial with a large proportion of sockets for research and development (R&D).'

The fact that LEENO Industrial has consistently expanded its dividends was also cited as a positive factor. Since its first cash dividend in 2002, LEENO Industrial has increased its dividends per share (DPS) except for four occasions. Researcher Moon stated, 'LEENO Industrial has maintained dividends even during the financial crisis in 2008 and the semiconductor down cycle in 2023 and 2024,' adding, 'In principle, we aim for a payout ratio of around 40% of our net income.'

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