Simtech is experiencing a surge in its stock price after reporting second-quarter earnings that exceeded market expectations, prompting analysts to raise their profit forecasts.
As of 1:44 PM on August 6, Simtech shares were trading at 108,100 won, up 5,100 won (4.95%) from the previous trading day. At one point, the stock soared to 117,400 won, with a trading volume of 724,942 shares.
For the second quarter of this year, Simtech reported consolidated revenue of 514.6 billion won, a 51.0% increase compared to the same period last year and a 21.8% rise from the previous quarter. Operating profit reached 62.9 billion won, more than ten times higher than the same period last year and up 358.7% from the previous quarter, resulting in an operating profit margin of 12.2%.
Analysts attribute the strong performance to an increase in the sales proportion of high-value products, rising average selling prices (ASP), and improved utilization rates. Some analysts estimate that operating profit exceeded market expectations by about 30%.
The growth of Simtech's next-generation memory module for artificial intelligence (AI) servers, known as SoCAMM, is also gaining attention. The company has revised its SoCAMM revenue forecast for this year from 150 billion won to 230 billion won. In the second quarter, SoCAMM sales reached 39.3 billion won, with expectations of increasing to around 70 billion won in the third quarter and 100 billion won in the fourth quarter.
Following these developments, several securities firms have raised their target prices. iM Securities adjusted its operating profit estimates for Simtech to 241 billion won for 2026 and 382 billion won for 2027, which are increases of 36% and 27%, respectively, from previous forecasts. They maintained a 'buy' rating with a target price of 185,000 won.
Meritz Securities also raised its operating profit forecasts for 2026 and 2027 to 246.7 billion won and 458.6 billion won, respectively. However, reflecting the decline in valuations of global semiconductor substrate companies, they lowered their target price from 190,000 won to 170,000 won.
Samsung Securities anticipates that the increase in the proportion of SoCAMM and system semiconductor products will lead to a higher growth rate in profits than in revenue in the second half of the year. The market believes that if the growth trend in the AI semiconductor market continues, Simtech's performance improvement will also persist.
* This article has been translated by AI.
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