[Edaily Reporter Kwon Oh Seok ] DS Investment & Securities announced on the 6th that it is maintaining its “Buy” rating on LEENO Industrial Inc(058470)and raising its target price from 77,000 won to 100,000 won.

Lee Su-rim, an analyst at DS Investment & Securities, stated, “We believe LEENO Industrial Inc.’s stock price has already largely factored in concerns over weak third-quarter earnings resulting from the full-scale strike in July. The strike has ended, and the company plans to achieve its existing annual guidance to the fullest extent possible by expanding production and shipments in the fourth quarter,” she said. “Rather than focusing on the already-known third-quarter earnings shock, investors should pay attention to: △ the normalization of fourth-quarter earnings; △ the downside limit on valuation due to the maintenance of annual earnings guidance; and △ new growth opportunities from test sockets for CPO (Common Package Optics), which will gain momentum starting in 2027.”
The firm projected operating profit of 206.6 billion won for 2026 (up 17% year-over-year) and 244.3 billion won for 2027 (up 18%). He stated, “Given that the risk of further downward revisions to profit estimates is limited, we believe a re-rating is warranted,” adding, “TES CO., LTD. AP test sockets for smartphone customers in North America
sockets are also holding steady due to the expanded adoption of WMCM as the transition to the 2nm process gains momentum. It is understood that North American AP clients have also begun R&D on the 2nm process, so we need to pay attention to the potential for expansion in both client base and application scope in 2027,” he emphasized.
He added, “In the medium to long term, the most noteworthy area is CPO. “The introduction of CPO creates a new testing domain—‘optical engine chips’—in addition to existing GPU, HBM, interposer, and package substrate testing,” he explained. “In particular, optical engine chips require an ultra-fine pitch of approximately 0.15 mm, low resistance, and precise current and voltage control per pin, making pogo-pin-based ultra-fine pitch technology crucial.”
The analyst added, “Currently, LEENO Industrial Inc is virtually the only company capable of producing test sockets for optical engine chips at this level. It appears highly likely that the company will supply these to major North American clients,” and noted, “Although the contribution to short-term revenue will not be significant since the full-scale mass production market has not yet taken off, what is important is that LEENO Industrial Inc is securing a first-mover advantage in the emerging optical engine test market that is developing alongside the spread of CPO.”