[Edaily Reporter Shin Ha-yeon] On the 5th, SK Securities projected that #Lykom would benefit simultaneously from an expansion in orders for optical amplifiers for AI data centers and growth in its defense and aerospace businesses. The firm did not provide a target price or investment recommendation.

Heo Seon-jae, an analyst at SK Securities, stated, “The reason to pay attention to Lycom now is that the order backlog for optical amplifiers is surging as the construction of AI data centers in North America gains momentum starting this year, increasing the visibility of earnings growth, and because the new defense and aerospace businesses, which have been in preparation for the past 10 years, are expected to begin contributing significantly to earnings.”

Lycom is a specialist in optical communication components, producing optical amplifiers for AI data centers and telecommunications infrastructure, as well as fiber lasers for defense and aerospace applications. Its major clients include Fujitsu, NEC, LIG Nex1, and Hanwha Systems.

In particular, he viewed the expansion of investment in AI data centers as a key driver of earnings growth. Analyst Heo explained, “Lycom supplies optical amplifiers—essential for high-capacity data transmission (DCI) between AI data centers—to global optical transmission equipment manufacturers such as Fujitsu and NEC.” He added, “These products are used in the construction of optical transmission networks for companies like AT&T, Verizon, and NTT, and ultimately facilitate data traffic processing between the AI data centers of big tech firms such as Google, Amazon, and Microsoft (MS).”

He noted, “The order backlog for optical amplifiers in the first quarter reached 6.5 billion won, a 171% increase year-over-year,” and added, “On the 4th, we signed a 3.9 billion won contract with Onefinity, a Fujitsu subsidiary, to supply optical amplifiers for 800Gbps coherent optical transceivers, marking the beginning of tangible orders for North American AI data centers.”

He further projected, “With additional orders expected in the second half of the year, optical amplifier sales are forecast to grow from 9.9 billion won in 2025 to 13.8 billion won in 2026 and 21.8 billion won in 2027.”

The defense business is also expected to enter a phase of full-scale growth. Analyst Heo noted, “As drones have emerged as a key asymmetric capability in recent warfare, laser weapons are rapidly gaining attention as next-generation anti-drone weapon systems.” He added, “Ricom is a key laser light source supplier participating in the domestic laser anti-aircraft weapon localization project and is expected to directly benefit from the expansion of mass production of laser weapon systems in the future.”

He stated, “The company recorded its first defense sales of 4.3 billion won last year, starting with a 5.3 billion won order for the LIG Nex1-led domestic laser air defense weapon project,” and added, “With the Cheongwang mass production contract as a turning point, defense sales are projected to expand to 4.9 billion won in 2026 and 15.8 billion won in 2027.”

He also highlighted growth potential in the aerospace sector. Researcher Heo stated, “The company has been selected as a participating institution in the 105 billion won Aerospace Semiconductor Strategic Research Group, led by the Ministry of Science and ICT and the National Science and Technology Council (NST).” He added, “The company is currently developing optical amplifiers for low-Earth orbit satellite communications, and is expected to enter the satellite communications market in the future.”

He further predicted that, based on expanded order intake this year, Lycom will enter a phase of substantial earnings improvement starting next year. Researcher Heo noted, “2026 will be the first year in which orders for optical amplifiers for North American AI data centers and fiber lasers for defense applications begin in earnest,” adding, “Revenue in 2027 is projected to reach 43.2 billion won, a 91.6% increase from the previous year, while operating profit is expected to reach 10.1 billion won, a 1,106.4% increase.”