Daishin Securities raised its third-quarter 2026 operating profit estimate for TLB (KOSDAQ: 356860) to 16.7bn won on the 7th, while maintaining a Buy rating and a target price of 60,000 won.
Analyst Park Kang-ho forecast third-quarter revenue of 96bn won and operating profit of 16.7bn won — up 13.6% from his previous estimate of 14.7bn won. On a sequential basis, revenue and operating profit are expected to rise 8.8% and 31.0% respectively, with year-on-year growth of 39.3% and 93.3%.
Daishin attributed the upgrade to two factors: an expanded supply of DDR5 server memory modules (RDIMMs) and the start of meaningful revenue contributions from substrates for compact camera modules (known internally as SoCam2). Despite an unfavourable currency environment — the won has been strengthening against the dollar — a higher proportion of premium products has lifted average selling prices (ASPs) and pushed profitability above expectations.
SoCam2 substrates are typically built with 12 to 16 layers, four to eight more than conventional server memory module boards. In the printed circuit board (PCB) industry, unit prices rise with layer count, so a larger share of SoCam2 in TLB's revenue mix translates directly into improved average margins.
By segment, DRAM module PCB sales are forecast at 65bn won in the third quarter, accounting for 67.7% of total revenue, with DDR5 products making up 50.6% of that figure. SSD PCB revenue is expected at 29.6bn won, or 30.9% of the total.
On an annual basis, Daishin projects 2026 revenue of 369.5bn won, up 42.9% year on year, and operating profit of 57.5bn won, a 121.4% increase. Given that TLB earned just 3bn won in operating profit in 2024, this would represent roughly a 19-fold surge in two years. It would also more than double the 26bn won expected for 2025.
In the fourth quarter, quarterly revenue is forecast to break the 100bn won barrier for the first time, reaching an estimated 109.4bn won — extending a run of sequential quarterly growth that began in the third quarter of 2024 to nine consecutive quarters.
The outlook for 2027 is equally upbeat. Daishin expects capacity investments at TLB's factories in Vietnam and Ansan, South Korea — focused on adding inner layers and expanding production — to ramp fully from the fourth quarter, pushing average quarterly revenue sustainably above 100bn won. Full-year 2027 revenue is estimated at 473.6bn won (up 28.8%) with operating profit of 74.7bn won (up 29.9%). The 60,000 won target price is derived by applying a target price-to-earnings multiple of 24.4 times to the firm's projected 2027 earnings per share of 2,462 won.
Investors should note that these projections come from a single brokerage. Compared with domestic PCB peers, TLB's projected 2026 operating margin of 15.6% trails Isu Petasys (21.5%) and Daeduck Electronics (17.2%), though it comfortably exceeds Korea Circuit (5.7%) and BH (4.9%). On a price-to-earnings basis, TLB trades at 23.5 times 2026 earnings, a discount to Isu Petasys (32.3 times) and Daeduck Electronics (33.1 times), suggesting its valuation carries relatively less risk.
That said, with roughly 70% of revenue tied to DRAM module PCBs, TLB's earnings are highly sensitive to the memory cycle. Any slowdown in DDR5 server module demand from Samsung, SK Hynix, or Micron — or delays in the mass production of SoCam2 — could derail the upward earnings trajectory. A persistently strong won also remains a structural headwind for a PCB maker with significant export exposure.
As of 6th October, TLB shares were trading at 50,400 won, roughly 20% below their 52-week high of 62,888 won. The stock has nonetheless risen 35.7% over the past month, outpacing the KOSDAQ index by more than 20 percentage points.