Kyobo Securities said on the 20th that TLB is further expanding its plants to address bottleneck processes for BVH substrates, and that the average selling price (ASP) will keep rising. It maintained a Buy investment opinion and raised its target price to 90,000 won from 83,000 won. TLB closed the previous trading day at 70,300 won.
Park Hee-cheol, an analyst at Kyobo Securities, said, "TLB is expanding plants focused on the bottleneck processes of BVH substrates," and added, "PCB for high-layer module semiconductors that apply the BVH method are higher value-added products than general product lines, so TLB's ASP uptrend is expected to accelerate next year."
Park cited 8,000 Mbps module PCBs, the SOCAMM lineup, and the 6,400 Mbps and 7,200 Mbps lineups as high-layer products that use the BVH method.
He added, "As server investment driven by artificial intelligence (AI) continues, visible full capacity demand can be expected through 2026," and analyzed, "Even so, the expansion of competitors' supply for high-layer products among memory module PCBs is limited, so TLB, which has moved first to expand capacity, is more likely to outperform the market."
On a consolidation basis in the third quarter of this year, TLB posted revenue of 68.9 billion won and operating profit of 8.7 billion won. Those figures rose 48.3% and 110.7%, respectively, from a year earlier.