[Click eStock] "Isu Petasys, Expected to Benefit from AI... Target Price Raised"

On the 16th, Kiwoom Securities raised the target price of Isu Petasys to 54,000 KRW, citing stable earnings growth expected due to benefits from artificial intelligence (AI). They also maintained their 'top pick' rating within the electrical and electronics sector.

Kim Sowon, a researcher at Kiwoom Securities, stated, "From the second quarter, with capacity expansion along with the increase in supply of high-profit network products and diversification of clients, we expect both quantitative and qualitative growth to continue." She particularly noted that Isu Petasys has numerous global big tech companies as clients, anticipating earnings growth amid the AI megatrend.

Isu Petasys reported first-quarter sales of 199.6 billion KRW and operating profit of 23 billion KRW, surpassing market expectations of 16.5 billion KRW. Researcher Kim Sowon analyzed, "Despite limited capacity, the company recorded its highest-ever sales by expanding the proportion of high-value-added products, and profitability also exceeded expectations. Overall, all subsidiaries focused on expanding high-value-added products, and one-time costs were resolved, resulting in strong performance."

Kiwoom Securities forecasts second-quarter sales of 206.1 billion KRW and operating profit of 24.5 billion KRW for Isu Petasys, exceeding market expectations of 18.6 billion KRW. Kim Sowon said, "From the second quarter, with the operation of new capacity, earnings are expected to trend upward. In particular, starting from the second quarter, mass production of products for the follow-up model of G company's AI accelerator will begin, leading to sales growth for AI accelerators and an expansion of the company's market share."

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