Isu Petasys shares surged in early trading, driven by expectations surrounding the construction of a new factory in Daegu and increased investment in substrates for artificial intelligence (AI) servers.
According to the Korea Exchange, as of 10:50 a.m., Isu Petasys shares rose by 11,700 won (17.03%) to 80,400 won. Around 9:30 a.m., the price limit for Isu Petasys stock futures was also gradually expanded. Other companies classified as substrate stocks, such as Daeduck Electronics (up 9.13%) and Simtek Holdings (up 21.08%), also saw gains.
The surge in Isu Petasys shares is attributed to heightened expectations for improved performance following increased investments in AI data centers. Established in 1972, Isu Petasys is recognized as a specialized manufacturer of printed circuit boards (PCBs) used in servers, network equipment, and AI accelerators.
Notably, Isu Petasys announced plans on November 2 to invest 500 billion won to build a new factory on approximately 169,000 square meters (about 42 acres) in the Daegu National Industrial Complex. The company stated, "Relevant agencies, including Daegu Metropolitan City, will cooperate to ensure that the investment proceeds smoothly through necessary support for industrial complex entry permits and administrative procedures."
The launch of related exchange-traded funds (ETFs) is also impacting supply and demand. On November 10, NH Amundi Asset Management listed the 'HANARO Samsung Electro-Mechanics Core AI Substrate ETF,' which invests in domestic companies related to multilayer ceramic capacitors (MLCC) and AI server substrates. This ETF has significant holdings in Samsung Electro-Mechanics, LG Innotek, Doosan, Isu Petasys, and Daeduck Electronics.
Kim Yeon-mi, a researcher at Daol Investment & Securities, noted, "Profitability improvements are becoming evident starting in the third quarter, and with tight substrate supply leading to price increases and a shift to multilayer structures, profit margins are expected to rise further."
* This article has been translated by AI.
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