Source Facts: Hana Securities / June 24, 2026
Investment Rating & Target Price: BUY / 250,000 KRW
Key Momentum: Full-scale supply of test sockets for next-generation AI accelerators and securing long-term growth visibility through discussions on Long-Term Agreements (LTA)
📊 1. [Valuation Metrics and Investment Indicators Analysis]
- Maintains “BUY” rating and raises target price to 250,000 KRW.
- The target price was calculated by applying a target P/E of 41.0x to the 2027 estimated EPS of 6,200 KRW.
- The target P/E of 41.0x reflects the average 2027 estimated P/E of ISC’s peers, Reno Industrial and Winway (Taiwan).
- Financial projections for 2026 include 314.5 billion KRW in revenue, 105.4 billion KRW in operating profit, and a 33% operating profit margin (OPM).
🚀 2. [Market Opportunity (TAM) and Detailed Earnings Estimates]
- Revenue growth is expected to be driven by an increase in sales of test sockets for GPUs and server CPUs.
- Current production capacity is estimated at approximately 300 billion KRW in annual revenue, with plans to secure a capacity of 400 billion KRW by the second half of 2027.
- Investments in production facilities are underway in both Vietnam and South Korea, with sequential ramp-ups expected in August 2026, January 2027, and the second half of 2027.
- Due to the increasing complexity and size of chips, both the technical difficulty and required volume for test sockets are rising, leading to expectations of a continued tight supply-demand environment.
📝 Editor’s Comment (by K-STOCK Editor)
With the emergence of the AI semiconductor market, the importance of high-performance test sockets is being highlighted more than ever. ISC is moving beyond the stage of a simple parts supplier and is solidifying its position as a key partner in the next-generation AI accelerator market, to the extent that it is negotiating LTAs with customers. In particular, preemptively securing production capacity through facility expansion will be an important trigger to increase mid-to-long-term growth visibility. However, yield management due to increased technical complexity and volatility in AI market demand will be key points for ongoing monitoring.
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