ISU Petasys Projected to Surpass 2 Trillion Won in Revenue [Click eStock]

DS: "Potential for Further Expansion After Completion of Facility Investments"
Target Price Raised Due to Continued Upward Revisions in Earnings Estimates

On May 20, DS Investment & Securities announced that it is maintaining its "Buy" investment opinion on ISU Petasys and raising its target price from 154,000 won to 190,000 won.

Lim Lee-soo, a researcher at DS Investment & Securities, stated, "Although ISU Petasys' share price has been largely overlooked compared to the memory value chain recently, earnings estimates continue to be revised upward. Therefore, we judge that valuation pressure has actually been alleviated."

Researcher Lim noted that ISU Petasys’ first-quarter results exceeded market expectations. In fact, ISU Petasys posted consolidated revenue of 340.3 billion won and operating profit of 67.2 billion won in the first quarter, which represent increases of 14% and 19%, respectively, compared to the previous quarter. Regarding this, she explained, "Monthly revenue increased by 8.1 billion won year-on-year, driven by the gradual reflection of the Phase 1 production capacity (CAPA) expansion and an increase in sales of artificial intelligence (AI) accelerators to Company G." She further explained, "The order backlog soared to 573.7 billion won, a significant jump from the previous quarter's 357.6 billion won."

She added that a general increase in orders from major clients is expected in the second quarter as well. In particular, with the impact of the Phase 2 production capacity expansion being reflected, the quarterly growth trend in revenue is likely to continue. She also pointed out that the proportion of 40-layer products will increase starting in the second half of the year. She went on to say, "After the completion of the investment, based on separate revenue, the company could potentially exceed 2 trillion won in sales." In addition, even with production capacity expansions each quarter, demand from client companies is rising at an even faster pace. She emphasized, "The company is expected to improve its product mix by reducing the share of low-profitability servers and increasing the proportion of sales from accelerators and AI switches—especially the main models among accelerators."

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