[Click e-Stock] "A-Fact, Opportunities Through SOCAMM2"

On September 19, Kiwoom Securities expressed expectations that A-Fact could benefit from opportunities related to SOCAMM.

SOCAMM is a low-power DRAM (LPDDR) module, often referred to as the "second high-bandwidth memory (HBM)." Nvidia recently scrapped its SOCAMM1 project and decided to introduce SOCAMM2. SOCAMM is a memory module specification specialized for AI, which Nvidia is independently pursuing. It was designed to provide large-capacity memory at a lower cost and with lower power consumption compared to HBM.

Oh Hyunjin, a researcher at Kiwoom Securities, stated, "Unlike SOCAMM1, SOCAMM2 presents greater supply opportunities for major domestic integrated device manufacturers (IDMs)," adding, "A-Fact is strengthening its post-processing outsourcing partnerships with leading domestic IDMs."

He continued, "If the supply of SOCAMM2 by domestic IDMs becomes more visible, the potential for related collaboration will also increase," and added, "A-Fact can expect revenue related to SOCAMM2 from assembly and burn-in testing, as well as LPDDR packaging."

Researcher Oh analyzed, "A-Fact recorded large-scale losses for two consecutive years, but turned a profit in the second quarter of this year," noting, "This is the first quarterly profit since 2023."

He further explained, "The main driver of improved performance is the growth in the semiconductor packaging segment," and stated, "As memory manufacturers focus their investments on advanced packaging centered on HBM, outsourcing volumes for legacy products are increasing."

He also said, "Efforts to reduce costs and increased orders from fabless companies have contributed to improved results," and added, "As of the first half of this year, A-Fact's packaging segment sales reached 37 billion won, a 50% increase compared to the same period last year."

He estimated that this year’s sales would reach 105.1 billion won with an operating profit of 1.2 billion won. This would represent a 21% increase in sales and a turnaround to profitability compared to last year.

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