[Edaily Reporter KIM YOON-JEONG ] KB Securities forecast that PSK INC.(319660)will continue to benefit from the aggressive expansion of capital expenditures (Capex) by global semiconductor manufacturers over the long term. The firm initiated coverage with a “Buy” rating and a target price of 280,000 won.

On the 7th, Lee Chang-min, an analyst at KB Securities, stated, “PSK INC., backed by a diversified global customer base across all application areas, is expected to fully capitalize on the current strong and prolonged front-end investment cycle—which is more robust than in the past—and is projected to record a compound annual growth rate (CAGR) of 27% in revenue and 34% in operating profit over the next three years.”
The target price was calculated using the discounted cash flow (DCF) method, applying a weighted average cost of capital (WACC) of 10.13% and a terminal growth rate of 3.95%. Based on the target price, the 12-month forward price-to-earnings ratio (PER) is 44.6x and the price-to-book ratio (PBR) is 10.3x, indicating an upside potential of 53.6% from the closing price on the 3rd.
KB Securities analyzed that the key to PSK INC.’s earnings growth lies in the prolonged benefits resulting from the full-scale expansion of capital expenditures (Capex) by global semiconductor manufacturers.
The analyst explained, “As all semiconductor customers demonstrate a strong commitment to investment—including continuous increases in Capex and shorter fab timelines—PSK INC. is expected to benefit fully from this across-the-board capacity expansion, given its diversified global customer base spanning DRAM, NAND, and foundry applications.”
He continued, “As major memory customers’ new large-scale fabs (P5, Y1, ID1, etc.) begin operations starting in 2027, investment in semiconductor equipment is expected to remain robust for an extended period,” adding, “We believe the structural upward trend in earnings—which significantly surpasses past cycles—will persist for the long term.”
He further noted, “The potential to expand sales to overseas clients—who offer relatively higher profitability—is expected to further strengthen PSK INC.’s earnings resilience. When considering the potential for spillover benefits from geopolitical factors, the company’s position as the global market leader is expected to become even more solid.”
KB Securities projected that PSK INC.’s 2026 revenue would reach 678.7 billion won, a 48% increase year-over-year, while operating profit would rise 109% to 184.6 billion won. The firm expects the operating profit margin (OPM) to reach 27.2%, marking an all-time high.
The analyst stated, “In addition to transition investments by memory customers, sales of new equipment resulting from capacity expansion investments are expected to drive earnings growth,” adding, “We anticipate step-wise growth with earnings strength increasing each quarter.”