[Infostock Daily= Reporter An Hoe Hyun] Hana Financial Investment maintained its 'Buy' investment opinion on Simmtech on the 25th and raised its target stock price to 30,000 won.
"The target stock price applied 12 times the target price earning ratio(PER) to net earnings per share(EPS) for 12 months in advance," the company explained, adding, "The upgrade of PER is because it believes that the valuation premium is possible by increasing the proportion of non-memory-oriented sales."
Simmtech made an investment announcement of 40 billion won along with the performance announcement, which is to respond to the increase in demand for MSAP substrates and SiP module boards. The SiP module substrate is an item whose demand is increasing steeply due to the spread of 5G, and it is positive in terms of high growth visibility and increased non-memory-oriented sales.
Simmtech's sales in 2021 are expected to increase 4% year-on-year to KRW 1.2449 trillion and operating profit to KRW 111.4 billion, up 24% year-on-year.
Reporter An Hoe Hyun ahh@infostock.co.kr
