Yuanta Securities said it expects operating profit of KRW 100 billion next year for Korea Circuit, offering a new target price of KRW 36,000 and an investment opinion of "buy.".
Yuanta Securities analyzed, "The tight supply and demand of flip chip BGA substrates is expected to continue throughout next year.".
"The technical difficulty has increased as the size of layers of high value-added semiconductor package boards has doubled. Overall, it is estimated that production capacity of major global companies is inevitable," said Yuanta Securities.
"As the shortage of equipment and materials related to FCBGA production lines continue until next year, the expansion of other FCBGA suppliers will be limited in the short term.".
Reporter Lee Dong-hoon firstname.lastname@example.org