Kiwoom Securities initiated coverage of TLB (KOSDAQ: 356860) on the 13th, assigning a Buy rating and a target price of 120,000 won — implying upside of roughly 60% from the stock's closing price of 75,200 won on 10th July.
Analyst Kwon Min-gyu cited rapidly growing orders for SoCAMM2 substrates as the primary investment case. The company's annual revenue forecast from SoCAMM2 alone has already been revised sharply upward: from 20bn won at the start of the year to 70bn won currently for 2026, and from 100bn won to 160bn won for 2027.
SoCAMM products — a premium category of high-density memory module substrates — are expected to account for 19% of total revenue in 2026, rising to 34% in 2027. Because they command prices roughly twice those of conventional substrates produced using the BVH (Build Via Hole) method, their growing share of the mix is a material tailwind for margins.
For the second quarter, Kiwoom forecasts revenue of 88bn won (up 37% year-on-year) and operating profit of 14.7bn won (up 115%), implying an operating margin of 17%. Both figures would exceed current market consensus of 86bn won in revenue and 12.8bn won in operating profit.
Full-year forecasts point to revenue of 379.7bn won and operating profit of 64.2bn won in 2026, rising to 477.3bn won and 87.9bn won respectively in 2027.
Capacity expansion is also under way. Additional production lines at TLB's second plant in Ansan, South Korea, and its first plant in Vietnam came online in July (the third quarter of 2026), with both facilities expected to reach peak utilisation by the fourth quarter.
TLB supplies printed circuit board substrates for memory modules and solid-state drives, counting all three of the world's major memory chipmakers among its customers. Despite the strong operational outlook, the shares have fallen roughly 40% from their recent peak, weighed down by a broader slump in the KOSDAQ — South Korea's technology-focused secondary exchange — and investor concern over dilution from a recent rights issue.