Hana Financial Investment told Simmtech on the 5th that the pace of improvement in the profitability of package boards will be faster than expected. Investment opinion 'buy' and target stock price has been raised to 48,000 won.
Simmtech's fourth-quarter sales are expected to reach 381.3 billion won (YoY +37%, QoQ +4%) and operating profit is expected to reach 58.6 billion won (YoY +298%, QoQ +16%).
In the module PCB sector, PC is feared to reduce demand, but the increase in sales of MCP and non-memory package boards in the package board sector is estimated to offset this.
"Simmtech's FC-CSP is mainly supplied for controller IC, and related demand is believed to be strong," Hana Financial Investment said. "The profitability is expected to level up once again as the expansion of 5000m2 of the MSAP substrate, a high value-added product, is starting to be reflected.".
"Simmtech demonstrated a company-wide operating profit ratio of 14% in the third quarter of this year," Hana Financial Investment said. "Because the profitability of the module PCB and its subsidiaries is lower than the company's operating profit ratio, the operating profit ratio of the package board reached 15%.".
Hana Financial Investment predicted, "The package board industry is expected to grow steadily in 2022, and Simmtech will also consider expanding once again within 2022.".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
