[Edaily Reporter Kim Hyung-il ] Shinhan Investment Securities forecasts that PSK HOLDINGS INC.(031980)will see significant earnings growth next year, driven by expanded capital expenditures from global semiconductor clients. The firm maintained its “Buy” rating and raised its target price by 37% from the previous level to 260,000 won.

On the 12th, Kim Hyung-tae, an analyst at Shinhan Investment Securities, estimated that PSK HOLDINGS INC.’s revenue for next year will reach 500.1 billion won—a 75% increase year-over-year—and operating profit will rise 77% to 200.5 billion won. These figures represent a 35% upward revision from previous estimates and significantly exceed the market consensus of 410.9 billion won in revenue and 165.7 billion won in operating profit.

Analyst Kim explained that the upward revision of earnings forecasts was made possible by the start of the capital expenditure cycle among global clients. He noted that the company’s robust track record of doing business with integrated device manufacturers (IDMs), foundries, and semiconductor back-end outsourcing companies (OSATs) is its core competitive advantage. He projected that the company could achieve a revenue growth rate exceeding 70% in 2027, when the trend of expanded investment is expected to be confirmed.

He projected that third-quarter earnings this year would fall short of heightened market expectations. Revenue is forecast to reach 75.7 billion won, a 60% increase from the previous quarter, while operating profit is expected to rise 133% to 32.1 billion won. However, he noted that these figures would likely fall short of the market consensus of 85.4 billion won in revenue and 36.0 billion won in operating profit.

This is due to some delays in fab-in by the company’s Taiwanese advanced packaging (CoWoS) customers. Consequently, the company estimated that the delivery of approximately five units of equipment would be deferred to the fourth quarter. However, considering the expanded CoWoS investment plans of TSMC and OSAT customers, the company projected that full-year revenue for this year would reach 286.6 billion won, in line with previous estimates. Analysts predict that the trend of earnings being concentrated in the fourth quarter will become even more pronounced.

Next year’s earnings improvement is expected to be driven by expanded investment in advanced packaging. Analyst Kim noted that with TSMC’s capital expenditure growth rate mentioned to be around 30%, the company is expected to benefit from an increased share of investment in CoWoS capacity expansion. He also projected that OSAT customers’ CoWoS production capacity would more than double compared to 2026 levels.

The firm also projected that the penetration rate of Discom equipment—targeted not only at existing reflow equipment but also at OSAT clients—will improve. It further anticipated that the effects of a recovery in High-Bandwidth Memory (HBM) investment will begin to be reflected starting in the fourth quarter. Accordingly, the firm assessed that expectations for the company to repeatedly set new all-time earnings records remain valid.

The target price increase reflects adjustments to 2027 earnings estimates and an upward revision of valuation multiples. Shinhan Investment Securities changed the basis for calculating earnings per share (EPS) from a 12-month forward period to 2027 and applied a 50% discount to PSK INC.’s related-party income, presenting an estimated 2027 EPS of 8,552 won. The target price-to-earnings ratio (PER) was raised from 26x to 30.6x to reflect the average of comparable companies, where the operating profit margin for back-end processes exceeds 20%.

“Analyst Kim expects investments in HBM and CoWoS to continue expanding through 2027,” he said, adding, “We anticipate a revaluation of the stock based on the company’s high exposure to key investment areas of its Chonbang customers.”