Kiwoom Securities said on the 22nd that for ISU PETASYS, full-scale supply of new products for 7th-generation TPUs for G is set to drive earnings growth. It raised its target price to 100,000 won from 83,000 won while maintaining a Buy rating. ISU PETASYS closed the previous trading day at 81,100 won.
Kiwoom Securities projected that ISU PETASYS's third-quarter sales on a consolidation basis will climb 31% on-year to 271.3 billion won, with operating profit up 103% to 52.5 billion won. Operating profit would top the market consensus of 46.5 billion won.
This is largely because full-scale supply of new products for 7th-generation TPUs for G has begun in earnest. Kim So-won, an analyst at Kiwoom Securities, said, "From the initial development samples, it is a high-spec product developed in cooperation with the client, and it is more profitable than those for other artificial intelligence (AI) accelerators, which is positive for product mix improvement."
Operating profit in the fourth quarter of this year is estimated at 56.5 billion won, up 122% from a year earlier. Kim said, "The effect of ISU PETASYS's production capacity (Capa) expansion will be reflected, beating market expectations (51.0 billion won)," adding, "In the fourth quarter as well, strong demand for TPUs and network products will continue, and with the addition of mass production effects from new products for O at the China subsidiary, the company will post a record quarterly performance."
As AI chipset performance advances, the multi-lamination manufacturing method is becoming the technology trend in multilayer boards (MLB). Kim said, "The expansion of multilamination products causes Capa loss due to repetitive production processes, and the structural supply shortage of MLB will deepen."
ISU PETASYS's share of multilamination sales is expected to rise from 10% this year to over 70% in 2028. Kim said, "Along with the gradual improvement in multilamination products' Production yield, the operating profit bar will continue to be raised," picking ISU PETASYS as the top pick in the sector.