[Edaily Reporter Park Jeong-soo] #KX Hi-Tech is showing strong gains. This is believed to be driven by investor sentiment following a securities firm’s analysis that the company’s profits will surge next year, driven by a combination of expanding demand for enterprise-grade solid-state drives (SSDs), increased sales of SSD enclosures with high average selling prices (ASP), and the effects of expanded production capacity (CAPA).
According to MP Doctor on the 4th, as of 9:33 a.m., KX Hi-Tech is trading at 1,878 won, up 15.93% (258 won) from the previous trading day.
Lee Jun-seok, an analyst at Hanyang Securities, stated, “KX Hi-Tech is a semiconductor component manufacturer operating a plastics division that produces semiconductor transport trays and a metals division focused on SSD cases. The plastics division has secured major clients such as Samsung Electronics and SK Hynix and has established a stable revenue base centered on IC trays and module trays.” "With the shift to flat-tray designs for module trays driving increased product demand, and the potential for the tray division to enter the module tray market for U.S. memory customers in the second half of the year, we expect sales growth in the tray division," he said.
He continued, “The SSD case business is also rapidly shifting its core growth focus from consumer-oriented products to enterprise SSDs (eSSDs) with high ASPs,” explaining, “The proliferation of AI data centers is leading to higher-capacity SSDs and increased heat generation, making efficient thermal management a key challenge for eSSDs.”
KX Hi-Tech reported consolidated revenue of 35.72 billion won and operating profit of 7.49 billion won for the first quarter of this year, representing year-over-year increases of 35.8% and 351.0%, respectively. The improvement in performance was driven by increased sales of eSSD cases and the return to profitability of its subsidiary, Intek. On a non-consolidated basis, revenue was approximately 22.0 billion won, with eSSD sales accounting for 11.73 billion won. Demand for eSSD cases has been steadily increasing since the previous quarter, and it is understood that the utilization rate at the eSSD factory in Vietnam is currently approaching 100%.
The analyst noted, “Given that the supply of eSSD cases is insufficient relative to the growth pace of the eSSD market, KX Hi-Tech is utilizing outsourced production even while operating its Vietnam plant at full capacity.” He added, “Considering the rising demand for eSSDs—which command an ASP approximately 2.5 times higher than that of consumer SSD cases—and the current utilization rate, capacity expansion in the second half of the year is a key focus. This, combined with the benefits of shifting production to Vietnam, has also led to improved profitability.”
The analyst continued, “Having entered a phase of supply shortages for SSD cases—a product category historically characterized by low value—and having secured all three major global memory companies as clients, thereby proving its quality and mass production capabilities, KX Hi-Tech is poised to elevate its overall profit capacity to the next level.” "We project that in 2026, consolidated revenue will reach 142.6 billion won and operating profit will reach 20.74 billion won, representing increases of 12.9% and 287.1%, respectively, compared to 2025."