[Click eStock] "TLB, Second Half of This Year Is Peak Season... Expecting a 'Turnaround'"

Daishin Securities on the 23rd forecasted that TL Biotech will enter a turnaround period in the second half of this year, reaching a normal operating rate range. The investment opinion 'Buy' and the target price of 32,000 KRW were maintained.

TL Biotech's sales in the fourth quarter of last year increased by 22.3% year-on-year to 48.1 billion KRW, and operating profit turned positive to 1.1 billion KRW during the same period. Sales exceeded market expectations by 4.2%, but operating profit fell short by 26.1%.

Researcher Kangho Park of Daishin Securities analyzed, "The memory module saw an increase in the proportion of Double Data Rate (DDR) 5, and the Solid State Drive (SSD) module recorded sales exceeding previous estimates due to increased shipments following production cuts in the third quarter of last year. However, operating profit fell short of market expectations due to a weakened mix and the reflection of some inventory adjustment costs."

Researcher Park judged this year as a turnaround period in which the operating rates of memory companies normalize. He said, "We expect an acceleration in DDR5 transition and an increase in server-oriented memory shipments. From the second half of this year, we anticipate the mass production of next-generation DRAM memory with Compute Express Link (CXL), leading to full-scale sales next year and additional profit expansion."

He added, "With the increase in server-oriented memory shipments, the proportion of high-capacity server memory modules (RDIMM) and enterprise and data center SSD modules will increase, expanding the scope of profitability improvement."

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