[Edaily Reporter Kim Hyung-il ] HYUNDAI MOTOR SECURITIES forecast that OKins Electronics Co.,Ltd.(080580)will see accelerated earnings growth as demand for semiconductor testing components expands and the adoption of CLT, a next-generation testing device, accelerates. The firm maintained its “Buy” rating and target price of 28,000 won.

Kim Jong-bae, an analyst at HYUNDAI MOTOR SECURITIES, stated, “Along with the rapid expansion of CLT equipment, expectations for the company’s burn-in sockets and connectors are bound to rise,” adding, “The adoption of CLT equipment is expected to proceed at an even faster pace next year.”

CLT is next-generation memory testing equipment capable of performing burn-in and low-frequency tests while inspecting multiple semiconductors simultaneously. It is characterized by a significant increase in the number of semiconductors that can be tested at once compared to existing testing equipment. OKins Electronics Co.,Ltd. supplies the sockets and connectors used in CLT equipment.

OKins Electronics Co.,Ltd.’s second-quarter revenue reached 35.1 billion won, a 29.6% increase year-over-year, while operating profit rose 163.1% to 8.4 billion won. The operating profit margin stood at 23.9%. The primary driver of this strong performance was the expansion of sales of sockets and connectors for CLT equipment.

Sales of burn-in sockets and connectors rose by 44% and 79%, respectively, in the second quarter compared to the previous quarter. HYUNDAI MOTOR SECURITIES estimated that this increase was effectively driven by expanded sales to the CLT sector. It analyzed that approximately the mid-10% range of first-half revenue was generated from CLT equipment.

Demand for test components is also expected to rise as the adoption of CLT expands. While existing test equipment has a concurrent processing capacity of 500 to 600 units, CLT currently handles approximately 11,520 units, theoretically increasing the number of semiconductors that can be processed simultaneously by more than 20 times. Consequently, analysts predict that demand for test sockets—which come into direct contact with semiconductors—will also increase.

In particular, the expansion of CLT orders for Vietnam is cited as an additional growth driver for next year’s performance. While the company had previously anticipated new orders of around 20 to 30 units annually, the addition of orders from Vietnam has led to a forecast that the volume of equipment orders and setups for 2027 will expand to 200–250% of the original estimate.

Once CLT equipment is supplied, OKins Electronics Co.,Ltd.’s connector sales are expected to be reflected first, followed by a gradual increase in socket sales after the equipment is set up. Consequently, the company is also expected to benefit from operating leverage driven by an improved product mix and increased sales.

Analyst Kim stated, “The company’s product count and sales volume are rapidly increasing amid the current memory supercycle,” adding, “Considering the rapid growth of CLT-oriented sockets and connectors, as well as high-bandwidth memory (HBM)-oriented connectors, the company’s profit capacity is set to enter a phase entirely different from the past.”

HYUNDAI MOTOR SECURITIES estimates OKins Electronics Co.,Ltd.’s 2027 earnings per share (EPS) at 2,146 won and has applied a target price-to-earnings (P/E) ratio of 13.1x. Based on next year’s projected earnings, the P/E ratio stands at 8.8x, which the firm believes indicates the company is undervalued compared to non-memory test component manufacturers.