[Featured Stock] Simtek Rises on Expectations of Memory Substrate Demand Recovery

Simtek is showing strong performance. It appears that securities firms' analysis expecting improved earnings due to accelerated recovery in memory substrate demand this year has had an impact.

As of 9:38 AM on the 12th, Simtek was trading at 34,550 KRW, up 2,650 KRW (8.31%) compared to the previous trading day.

SK Securities analyzed on the same day that Simtek's earnings are expected to trend upward due to accelerated recovery in memory substrate demand.

Park Hyung-woo, a researcher at SK Securities, stated, "Sales of low-value-added product lines are decreasing, while demand for FCCSP (Flip-Chip Chip Scale Package) and MCP (Mobile Memory and SSD packaging substrates) product lines is recovering," adding, "New orders have increased since March, with orders rising for three consecutive months from March to May."

He continued, "The recovery of memory substrates is steeper than initially expected, and Simtek's market share within the MCP substrate industry is increasing," explaining, "Order growth is appearing in the second quarter, and significant earnings improvement is expected starting from the third quarter."

He forecasted, "Since early last year, there has been a base effect due to extreme inventory adjustments and price reductions, and with new orders on the rise, the upward trend in earnings is expected to continue."

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