[Edaily Reporter Hyera Lee ] On the 26th, Meritz Securities projected that TLB Co., Ltd.(356860)would enter a phase of structural growth, driven not only by a recovery in the memory market but also by the rapid expansion of its share of high-value-added products for artificial intelligence (AI). The firm maintained its “Buy” rating and target price of 130,000 won.

Yang Seung-soo, an analyst at Meritz Securities, stated, “The memory upswing, combined with the AI premium, will lead to continued improvement in the product mix.” He added, “In the medium to long term, proactive capacity expansion through a rights offering, coupled with the increasing difficulty of stacking memory modules, will create a structure where both price (P) and volume (Q) grow simultaneously.”
Meritz Securities projected TLB Co., Ltd.’s second-quarter consolidated revenue and operating profit at 86 billion won and 12.7 billion won, respectively. These figures represent year-over-year increases of 34.2% and 84.7%, respectively, and are in line with market estimates.
Research Analyst Yang explained, “Despite limited production capacity, positive exchange rate effects, price hikes, and a rise in the average selling price (ASP) driven by expanded shipments of products such as SoCam will drive revenue growth.” He added, “In particular, with mass production of SoCam underway for one domestic company and one North American company, related revenue is estimated to have more than doubled compared to the previous quarter.”
He also projected that the expansion of high-value-added products for AI applications would gain momentum. “This year, product mix improvements will continue, driven by the growth of SoCam 2 following the expansion of NVIDIA’s Vera CPU and an increased share of AI revenue,” he said. “Additional process investments at the Ansan Plant 2 and Vietnam Plant 1 will also lead to expanded capacity for high-value-added products and improved production efficiency starting in the second half of the year.”
In particular, he highlighted SoCam 2 as TLB Co., Ltd.’s core growth driver. Analyst Yang stated, “Revenue from SoCam 2 memory modules is expected to grow from 422억 원 this year to 1062억 원 next year, and its share of total company revenue will expand from 11.5% to 22.4%,” adding, “The high proportion of SoCam 2 compared to domestic competitors is a key differentiating investment point.” He added, “The next-generation SoCam 3, currently under development, is expected to feature an increased number of layers, which is anticipated to drive a further rise in ASP.”
He also predicted an expansion of the AI product lineup in the second half of the year. “We expect shipments of AI storage SSD memory modules for the Vera Rubin platform to begin,” he said, adding, “With a higher number of layers compared to existing SSD memory modules, we anticipate a rise in ASP.”
Analyst Yang noted, “While valuation concerns stemming from the rights offering have come to the fore, causing the stock price to correct by 59.9% from its peak,” he added, “the investment appeal has actually increased as the rights offering has laid the foundation for mid- to long-term growth through large-scale capacity expansion.”