[Click e-Stock] "Leeno Industrial to Deliver Solid Results Regardless of Market Conditions... Target Price Raised"

On June 9, Hana Securities maintained its 'Buy' investment rating on Leeno Industrial and raised its target price to 57,000 won, stating, "Despite lukewarm conditions in the smartphone industry and ongoing tariff uncertainties, the company is expected to continue delivering solid results."

Kim Minkyoung, a researcher at Hana Securities, explained on the same day, "In the mid- to long-term, there will be active development of new APs to apply artificial intelligence (AI) functions to new devices such as mobile phones, robots, and vehicles. This is expected to lead to increased sales of test sockets for Leeno Industrial." The target price is based on a 12-month forward EPS of 1,878 won and a PER of 30.23 times.

She added, "Leeno Industrial is planning to relocate to a new plant in the fourth quarter of next year. Related facility investments are expected to exceed 50 billion won this year, and after the relocation, the annual production capacity (based on sales) is projected to expand to over 900 billion won."

For the second quarter of this year, sales are forecast at 84.3 billion won and operating profit at 40.6 billion won, representing increases of 19% and 22%, respectively, compared to the same period last year. The expected operating margin is around 48%. Kim explained, "Although the recovery in global smartphone sales is limited, demand for mass-production test sockets, especially in emerging markets, remains solid. In addition, the launch of new mid- to low-priced products by major clients is helping to maintain the average selling price (ASP) at a favorable level."

On an annual basis, sales are projected at 330 billion won and operating profit at 155.4 billion won for this year, up 19% and 25%, respectively, from last year. The expected operating margin is 47%. She stated, "Major AP companies have started adopting the 3-nanometer process from the second half of next year, and as miniaturization progresses, diversification of sales by client is also anticipated. Major foundry companies are accelerating the introduction of new technologies such as GAA and BSPDN throughout the entire process, and packaging technology is also advancing. Based on its technological capabilities, Leeno Industrial is expected to strengthen its market dominance."

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