Kyobo Securities on the 10th reiterated its "buy" recommendation on Simtech (KOSDAQ: 222800) and raised its target price from 135,000 won to 160,000 won.
Based on the closing price of 117,900 won on 9th July, the new target implies an upside of 35.7%.
Kyobo identifies SOCAMM — a memory module component featured in Nvidia's newest products — as the defining catalyst for the substrate industry in the second half of 2026. Simtech is well placed to benefit on two fronts simultaneously, supplying both package substrates and module substrates for the technology.
The brokerage estimates Simtech's second-quarter revenue at 456.1bn won, up 33.8% year on year, with operating profit of 50.4bn won — a near sevenfold increase of 579.3% compared with the same period a year earlier. The sharp earnings jump reflects the start of initial SOCAMM shipments in June as well as the positive effect of price increases on substrates already in supply.
For the full year 2026, Kyobo projects revenue of 1.866tn won (up 32.3% year on year) and operating profit of 200.4bn won, representing a 1,587.7% increase. The brokerage expects operating profit to expand further, to roughly 300bn won or more, in 2027.
The revised target price was derived by applying a price-to-earnings multiple of 22 times to the firm's estimated 2027 earnings per share of 7,262 won — a 20% discount to the average P/E ratio of comparable substrate makers both domestically and abroad.
The report was authored by analyst Park Hee-cheol of the Kyobo Securities Research Centre.