[Edaily Reporter Kim Hyung-il ] DaishinSecurities projected that SIMMTECH Co., Ltd.(222800)’s second-quarter operating profit significantly exceeded market consensus and that profitability improvements will gain momentum in the second half of the year. The firm maintained its “Buy (BUY)” investment rating and target price of 170,000 won.

On the 11th, Park Kang-ho, an analyst at DaishinSecurities, stated, “Second-quarter operating profit came in at 62.89 billion won, exceeding the consensus estimate of 47.3 billion won by 33%,” adding, “Revenue also reached 514.6 billion won, surpassing the consensus estimate of 466.9 billion won.”

He continued, “The proportion of high-value-added products, such as Micro-Structure Auto-Processing (MSAP), within semiconductor packaging—including Multi-Chip Packages (MCP)—increased, and sales of SoCam 2 were fully reflected in the memory module segment.” He explained, “As the burden of raw materials and supplies decreased due to factors such as falling gold prices, the company-wide operating profit margin expanded by 9 percentage points from the previous quarter to 12.2%.”

Researcher Park stated, “We forecast third-quarter operating profit to reach 76.7 billion won, a 519% increase year-over-year and a 21.9% increase quarter-over-quarter,” adding, “Among semiconductor printed circuit board (PCB) manufacturers, we estimate that the company will post the highest quarter-over-quarter growth rate in operating profit for the second half of 2026.”

Operating profit for the second half of 2026 is estimated at 159.2 billion won, a 108% increase compared to the first half. The report forecasts that expanded sales of SoCam 2, along with an increased share of non-memory packages and MSAPs, will drive profitability improvements.

Researcher Park said, “We estimate that Socam 2’s annual revenue for 2026 will reach 141.4 billion won, a significant increase from the 4.5 billion won recorded in 2025,” adding, “Revenue for the second half is projected at 104.9 billion won, with full-scale supply expected to begin in the third quarter.” He further explained, “As NVIDIA’s mass production of Veralubin gains momentum, the supply of SoCam 2-related modules is currently on the rise.”

He also projected that improvements in memory module production costs due to falling gold prices would contribute to profitability. Researcher Park noted, “Given that gold accounts for a significant portion of memory module production costs, gold prices have fallen by approximately 20% as of August 10 compared to their peak on January 28,” adding, “Coupled with the increase in revenue, this will contribute to profitability in the second half of 2026.”

He also projected that revenue from non-memory packaging would continue to grow. In the second quarter, revenue from non-memory packaging—including flip-chip scale packages (FC CSP) and system-in-package (SIP)—reached 76.3 billion won, a 23.5% increase from the previous quarter, and he estimated that 2026 revenue would reach 296.9 billion won, a 46.7% increase year-over-year.

Analyst Park stated, “With the full-scale launch of SoCam 2, high growth in sales of high-value-added non-memory packages, and an expansion of the MSAP product line’s share, annual operating profit is expected to rise to 235.8 billion won in 2026 and 322.0 billion won in 2027,” adding, “The company is expected to enter a period of strong profitability.”

He continued, “We have raised our earnings per share (EPS) forecasts for 2026 and 2027 by 25.5% and 40.8%, respectively, compared to our previous estimates,” and maintained the company as his top pick among PCB manufacturers.