SK Securities said on the 17th that as artificial intelligence (AI) infrastructure investment continues, profitability will start to improve in earnest as the average selling price (ASP) of multi-layered MLB surges for ISU PETASYS. It maintained its "Buy" investment opinion and raised its target price to 144,000 won from 79,000 won. The previous trading day's closing price of ISU PETASYS was 111,100 won.
Park Hyeong-woo of SK Securities said, "In the third quarter of this year, ISU PETASYS is seeing ASP and profitability improvements kick into gear in tandem with a major customer's new AI accelerator," and noted, "Alongside AI server investment, expanded investment in communications networks inside and outside data centers is keeping sales to network customers in the 30% range."
On a consolidation basis, ISU PETASYS posted third-quarter revenue of 29.6 billion won and operating profit of 5.8 billion won this year. Compared with a year earlier, revenue and operating profit rose 43% and 126%, respectively.
Park said, "Fourth-quarter results will be similar to the third quarter." However, he assessed that profit will improve this quarter as the average exchange rate rose by 50 won from the previous quarter.
Park also said the stock has strong upside potential next year. Park analyzed, "The new technology, multi-layer substrate, has an ASP twice that of existing MLBs, so supply prices are expected to surge." In particular, Park said, "Given that price hikes for the same products have not yet begun, profitability is expected to improve through supply price increases if a supply shortage sets in."
Park added, "The key trend in 2026 will be the network infrastructure investment cycle," and said, "ISU PETASYS will be the biggest beneficiary of this momentum."