SILICON2(257720) is strong early in the session on the back of the securities industry's outlook for earnings growth.
As of 9:24 a.m. on the 14th, SILICON2 is trading at 44,400 won on the Korea Exchange, up 3,600 won (8.82%) from the previous session.
NH Investment & Securities raised its target price 12.5% to 54,000 won from 48,000 won, and Hana Securities lifted it to 59,000 won from 52,000 won. Both brokerages maintained a "buy" rating.
SILICON2's consolidated revenue for the second quarter of this year was 402.6 billion won, up 52% from a year earlier. Operating profit rose 59% to 83.0 billion won, beating market expectations by 16.5%. Strong growth continued across key regions, with revenue up 62% in Europe and 79% in North America.
Jeong Ji-yoon at NH Investment & Securities said, "Even accounting for currency effects, revenue growth and profit trends are strong versus market expectations," adding, "The current share price implies a 2026 price-earnings ratio (PER) of 10.9 times, a level with limited valuation pressure."
NH Investment & Securities raised its revenue outlook for SILICON2 this year 3.6% to 1.571 trillion won from 1.516 trillion won. It also lifted its operating profit estimate 7.4% to 290.0 billion won.
The growth trend is expected to continue in the third quarter. Hana Securities projected SILICON2's third-quarter revenue to climb 56% on-year to 466.6 billion won. It said the peak season effect will kick in as U.S. and European distributors move to secure inventory ahead of year-end discount events.
Park Jong-dae at Hana Securities said, "SILICON2's peak season effect is getting bigger from the first quarter to the second and from the second to the third," adding, "The share of volatile resellers is decreasing while the portion of retailers in the United States and Europe is rising quickly, giving very high visibility on revenue growth."