Daishin Securities predicts Simmtech's third quarter sales and operating profit to exceed market forecasts
Quick Look
- Daishin Securities predicted that Simmtech's third quarter sales would exceed the market consensus with KRW 553.5 billion, a 48.5% increase in sales compared to the same period last year, and KRW 83.7 billion in operating profit, a surge of 576%.
- This is due to the mix effect resulting from the increase in SoCam 2 sales and the increase in the proportion of high value-added MSAP processes, and it is analyzed that the expanded application of SoCam 2 to NVIDIA servers highlights its advantage in simultaneous supply of modules and boards to the three memory companies.
AI-generated summary
Why It Matters
Simmtech is a company that develops and manufactures printed circuit boards for semiconductors, and its main business is the production of high value-added products using SoCAM 2 and MSAP technology.
Daishin Securities predicted on the 9th that the sales and operating profit of Simmtech [222800], a semiconductor printed circuit board development and manufacturing company, will exceed the market consensus (average estimate) in the third quarter.
Researcher Park Kang-ho said in the report that day, "Due to the mix effect resulting from the increase in SoCam 2 sales and the increased proportion of high value-added MSAP (high multilayer microcircuit technology), sales in the third quarter will increase by 48.5% compared to the same period last year to KRW 553.5 billion, and operating profit will surge 576% to KRW 83.7 billion, which is expected to exceed the consensus."
Socam 2 is a type of substrate used in semiconductor packages, and MSAP is a manufacturing process technology that makes semiconductor package substrates finer and more precise.
He continued, “With the full-scale application of SoCam 2 to Nvidia servers, our advantage in simultaneously supplying modules and boards to the three memory companies is highlighted,” and added, “With expectations of operating profit of 170 billion won in the second half, we maintain the investment opinion of ‘buy’ and target price of 170,000 won.”
Simmtech's closing price the previous day was 121,800 won.
Researcher Park also added, "Profitability is expected to improve due to an 82% increase in the proportion of MSAP in the third quarter," and added, "We have secured an additional mid- to long-term growth basis through new facility investment worth 274.2 billion won to expand Socam 2 and MSAP production capacity (operation in the first quarter of 2028)."
What to Watch
AI outlook — possibilities, not facts
Simmtech's third quarter sales are expected to record 553.5 billion won, a 48.5% increase compared to the same period last year.
Likely · Within weeks
Simmtech's operating profit in the third quarter is expected to record KRW 83.7 billion, a 576% increase compared to the same period last year.
Likely · Within weeks
Open Questions
- What is the specific scale and timing of new facility investment to expand Socam 2 and MSAP production capacity?
- What is the specific impact of the expansion of SoCam 2 supply to NVIDIA servers on actual sales?
