[Click eStock] "TLB, Best Performance Starting This Year"… Target Price 55,000 Won

Operating Profit Expected to Surge 196% This Year

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 26th that it has given a buy rating and a target price of 55,000 KRW for TL Biotech by applying a target price-to-earnings ratio (PER) of 6.8 times to this year's earnings per share.

Shin Seok-hwan, a researcher at Daishin Securities, said, "Considering the expected record performance this year and next year, the reflective benefits from the transition period to 'DDR5', and the entry into the highly profitable server DRAM memory module market, there are premium factors compared to domestic competitors," adding, "We believe that the semiconductor package has already priced in this year's peak boom and long-term high growth factors."

TL Biotech's sales are expanding this year due to increased market share in the storage device (SSD) market using semiconductor memory devices, and new sales are expected next year as memory (DRAM) modules in the server market begin transitioning to DDR5.

In particular, it is forecasted that a new growth phase will come to TL Biotech as memory (DRAM) modules are replaced from the previous DDR4 to DDR5, starting this year for PCs and next year for servers.

DRAM memory manufacturers (Samsung Electronics, SK Hynix, Micron) and CPU companies (Intel, AMD, etc.) are expected to accelerate the transition of DRAM memory modules to DDR5, as memory companies believe that switching to DDR5 will contribute to profitability improvement amid falling DDR4 prices and weakened PC demand.

Researcher Shin emphasized, "DDR5 has advantages such as improved data transfer speed and memory performance compared to the previous DDR4, as well as reduced power consumption, fundamentally representing an upgrade in semiconductor specifications," and added, "From the memory module perspective, miniaturization of circuit implementation and an increase in the number of circuit layers are expected to raise the average selling price (ASP)."

TL Biotech's sales this year are projected to increase by 27.3% year-on-year to 226.9 billion KRW, and next year to 259.1 billion KRW, a 14.2% increase from this year. Operating profit is expected to reach 39.5 billion KRW and 47.2 billion KRW respectively, marking growth rates of 196.3% this year and 19.4% next year.

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