[Click eStock] "Korea Circuit Exceeds Q1 Operating Profit Estimates... Strong Performance Continues"

[Asia Economy Reporter Lee Jung-yoon] Daishin Securities maintained a buy rating and a target price of 38,000 KRW for Korea Circuit on the 22nd, citing expectations of continued strong performance.

Korea Circuit's consolidated operating profit for the first quarter of this year is projected to reach 36.4 billion KRW, a 371% increase compared to the same period last year, surpassing estimates. Sales are expected to grow 39% year-on-year to 412.5 billion KRW, indicating sustained high growth.

This is attributed to increased sales of HDI (High-Density Interconnect) boards driven by the launch of the Galaxy S22 and the mix effect maintaining high operating profit margins, an expanded proportion of high-value-added semiconductor package sales, reduced fixed cost burden due to high utilization rates, and the reflection of Interflex's performance, a consolidated subsidiary. Additionally, on a separate basis, sales for this year are expected to rise 30.2% year-on-year to 842.7 billion KRW, with operating profit increasing 74.2% to 102.7 billion KRW, marking record performance.

Park Kang-ho, a researcher at Daishin Securities, explained, "After the restructuring of the HDI board and market reorganization, Korea Circuit's market share within Samsung Electronics has increased," adding, "They are responsible for supplying mainly to the Galaxy S and Z series, which is expected to result in stable growth and high profitability." He further noted, "In semiconductor packages, through cooperation with overseas customers, they have entered the FC BGA (Flip Chip Ball Grid Array) market, with sales expected to reach 112.1 billion KRW this year."

This content was produced with the assistance of AI translation services.