[Market Focus] Leeno Industrial Rises 6% on Hopes for Expansion of On-Device AI

Shares of Leeno Industrial, a manufacturer of semiconductor test components, rose on expectations for the expansion of new AI devices such as on-device AI.

As of 9:50 a.m. on January 27, Leeno Industrial was trading at 80,500 won on the Korea Exchange, up 5,200 won (6.91%) from the previous session.

Leeno Industrial produces IC test sockets, which are consumable parts for semiconductor test packages, as well as LEENO PINs, consumable components used to check for electrical defects in semiconductors or printed circuit boards.

In the securities industry, it is expected that Leeno Industrial's growth potential will increase as global companies expand IT devices utilizing AI. Jeong Hong-sik, an analyst at LS Securities, stated, "Leeno Industrial's IC test sockets are produced in small quantities of various types, resulting in a highly diversified customer base. However, if we look at the recent expansion in growth, it appears that there is a trend of concentration toward large customers." He explained, "The basis for this judgment is the company's quarterly report, specifically the notes on financial statements listing major customers. The sales share of the top four customers increased from a cumulative 60.5% in the third quarter of 2024 to 66.2% (+5.7 percentage points) in the third quarter of last year."

He added, "The growth of Leeno Industrial's IC test sockets is linked to R&D in non-memory semiconductors, and the current increase in demand for smart devices equipped with on-device AI functions is very positive. Since the expansion of new IT devices by global big tech companies is a long-term trend, it is highly likely that structural earnings growth will continue beyond this year."

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