iM Securities raises Simmtech target stock price to 250,000 won... Reflecting expectations for AI CPU demand

iM Securities raised its target stock price for Simmtech [222800], a KOSDAQ-listed company that manufactures printed circuit boards (PCBs) for semiconductors, from 185,000 won to 250,000 won on the 6th, saying it expects rapid growth until next year thanks to demand for AI central processing units (CPUs) that exceeds expectations. The investment opinion was maintained at Buy.

Researcher Ko Eui-young said in the report, "This year's operating profit is expected to increase by 2.6%, next year's by 3.9%, and 2028's by 17.9% compared to the previous forecast."

He said, "The operating profit in the third quarter of this year is estimated to be 83 billion won. If the exchange rate had been at the level of the second quarter (when it was high), performance in the 90 billion won range would have been possible," he said. "It is understood that monthly orders continued to trend upward gradually without a surge from July to September. This means that the possibility of a sharp decline is low, and we believe that the shape of the cycle itself supports the sustainability of performance."

In particular, he said that the large-capacity low-power memory used in CPUs has been highlighted as a beneficiary area since the launch of AI agents in the market recently. “The growth in demand for AI CPUs exceeding expectations, the speed of LPDDR (low-power memory) penetration, and the expansion of customers adopting SOCAMM (low-power memory module for servers) are catalysts for the stock price, and they are becoming visible,” he explained.

Researcher Ko said that "Simmtech's SoCam sales are expected to grow to KRW 452.1 billion next year and KRW 732 billion the year after," citing the fact that global semiconductor company AMD has formalized support for LPDDR5X-based SoCam in its next-generation server CPU and that the effect of the expansion announced last August will be seen.

Simmtech's battlefield closing price is 167,200 won.