SIMMTECH, a printed circuit board (PCB) manufacturer, jumped more than 11% early on the 7th. After it released strong first-quarter results and brokerages issued upbeat outlooks in succession, buying poured in.
As of 9:52 a.m. on the KOSDAQ market, SIMMTECH was trading at 104,900 won, up 11,100 won (11.83%) from the previous session. It rose to as high as 109,500 won early in the session, hitting an all-time high.
SIMMTECH said in a filing the previous day that on a consolidation basis in the first quarter of this year, it tentatively tallied revenue of 424.4 billion won and operating profit of 13.7 billion won. Revenue rose 39.1% from a year earlier, and operating profit turned to black from a year earlier, when it posted an operating loss of 16.3 billion won. Net profit also turned to black at 15.1 billion won.
Five brokerages (Shinhan, NH, Kyobo, iM and Daishin) that published corporations analysis reports on SIMMTECH that day all raised their target prices.
Shinhan Investment & Securities raised SIMMTECH's target price to 150,000 won from 120,000 won.
Seo Ji-beom, an analyst at Shinhan Investment & Securities, said, "Tandem growth in memory modules and packaging substrates has been confirmed, and since March, price hikes have been partially reflected, offsetting part of the rise in materials and supplies costs," and noted, "The increase in monthly average order value is also positive."
Seo added, "With sales of new products such as SoCam2 gaining traction and the share of high value-added substrates using the modified semi-additive process (mSAP) expanding, an increase in the average selling price (ASP) is expected this year."