[E-Daily Reporter Shin Ha-yeon ] SIMMTECH Co., Ltd.(222800)is showing strength in early trading on expectations that its third-quarter operating profit will exceed market expectations and that sales of SOCAMM2 will expand.

According to MP Doctor on the 9th, as of 9:56 a.m., SIMMTECH Co., Ltd. is trading at 128,450 won, up 5.46% from the previous trading day. The stock rose as high as 128,600 won during the session.

This is interpreted as a result of investment sentiment being stimulated by forecasts from the securities industry that profit improvement will gain momentum in the second half of the year, driven by expanded SOCAMM2 sales and an increased share of high-value-added circuit boards.

DaishinSecurities projected today that SIMMTECH Co., Ltd.’s third-quarter operating profit would reach 83.7 billion won, a 33.1% increase from the previous quarter and a 575.8% increase year-over-year. This exceeds both the previous estimate of 76.7 billion won and the market consensus of 83.0 billion won. Revenue is estimated to reach 553.5 billion won, a 48.5% increase year-over-year.

Park Kang-ho, an analyst at DaishinSecurities, explained, “The strong third-quarter performance is attributed to an improvement in the operating profit margin, driven by higher sales related to SoCam 2 compared to competitors starting in the second quarter, as well as an expanding share of MSAP sales in high-value-added segments.”

Expectations for profit growth in the second half of the year are also rising. DaishinSecurities estimates SIMMTECH Co., Ltd.’s operating profit for the second half at 170 billion won, a 122% increase from the first half. The firm also forecasts an operating profit of 86.2 billion won and an operating profit margin of 15.1% for the fourth quarter.

In particular, SoCam 2 was identified as a key growth driver. SIMMTECH Co., Ltd.’s SoCam 2 module revenue is expected to increase by 111.5%, from 151.8 billion won this year to 321.0 billion won next year. Analysts predict that the company will continue to benefit as the adoption of server memory modules expands, starting with NVIDIA’s Vera Rubin.

Analyst Park emphasized, “SIMMTECH Co., Ltd. holds the largest market share among SoCam 2 module manufacturers and is simultaneously supplying the related semiconductor substrate, LPDDR5,” adding, “We expect SIMMTECH Co., Ltd. to benefit even more as NVIDIA transitions to its next-generation platform.”