Isupetasis Stock Outlook and Rights Issue

The stock market has been quite volatile lately, hasn't it? So today, we're going to look at the stock price outlook for 'ISUPETASIS,' a company that has recently garnered a lot of attention. What business does this company do, and what does its future look like? Let's find out together!

Introduction to ISUPETASIS

ISUPETASIS (Stock Code 007660), established in 1972, is a company whose main business is the manufacturing and sale of printed circuit boards (PCBs). Its headquarters and factory are located in Dalseong-gun, Daegu Metropolitan City, * and it has two subsidiaries in China, one in the U.S., and one in Hong Kong.

It has secured top-tier PCB manufacturers in the global market as clients and has established a product lineup mainly focused on high-performance, multilayer MLBs. Recently, it has achieved improved performance along with the growth of the communication equipment MLB market due to the increased demand for 5G network construction. In June 2023, compared to the same period of the previous year, its consolidated revenue increased by 29.5%, and it achieved a turnaround in both operating and net income. Increased orders from North American clients and the effect of the rising exchange rate led to external growth and improved profitability, and continued strong demand for data center boards is expected to lead to stable future performance growth.

ISUPETASIS Related Stocks

The following are stocks related to ISUPETASIS.

1. Daedeok Electronics (353200)
- A supplier of PCBs used in semiconductors, smartphones, and automotive electronics, it is expected to benefit from the growth of the PCB market along with ISUPETASIS.
- Profitability is improving due to the expansion of high-value-added products such as flip-chip embedded substrates (FCBGA) and the continued shortage of supply for non-memory semiconductor substrates.

2. Korea Circuit (007810)
- A manufacturer of PCBs used in smartphones, PCs, and servers, it is expected to benefit from the growth of the PCB market along with ISUPETASIS.
- Profitability is improving due to the increased demand for semiconductor package substrates and the expansion of the proportion of high-value-added packaging substrates.

Please refer to the fundamentals and market conditions of these stocks for investment consideration.

ISUPETASIS Stock Price Outlook

ISUPETASIS's stock price in 2023 is expected to be influenced by the following factors:

1. Recovery of Demand in Upstream Industries
- Due to the resumption of data center investment by hyperscalers such as Google, Amazon, and NVIDIA, and the growth of the AI and big data fields, demand for high-performance servers and network equipment is expected to increase.
- Continued investment in 5G infrastructure by North American telecom operators is also expected, leading to increased MLB orders for ISUPETASIS.

2. Expansion of the Proportion of High-Value-Added Products
- ISUPETASIS is improving its profitability by improving its product mix centered on multilayer MLBs.
- The demand for ultra-multilayer MLBs supporting high-speed transmission of 100Gbps or more is increasing, and the proportion of high-value-added products is expected to continue to expand.

3. Effects of Increased Capital Expenditures
- The operation of newly installed production lines is expected to begin in earnest from 2023.
- Along with the expansion of production capacity, an increase in sales and improved profitability are expected.

Overall, due to the favorable conditions in ISUPETASIS's upstream industries, the expansion of the proportion of high-value-added products, and the effect of increased capital expenditures, improved performance is expected, and the stock price is also expected to have the potential to rise.

ISUPETASIS Target Price

The target prices for ISUPETASIS presented by major securities firms are as follows:

* Kiwoom Securities - KRW 10,000
* Daishin Securities - KRW 8,800
* Shinhan Financial Investment - KRW 9,500

The target price is calculated by comprehensively considering the company's performance outlook and market conditions.

The presented target prices are for reference only, and before making actual investments, be sure to carefully analyze the company's financial status and business status.

ISUPETASIS Dividends

ISUPETASIS's recent dividend payments are as follows:

- 2022: KRW 50 per share

Dividends may vary depending on the company's business performance and shareholder return policy.

To confirm the exact dividend payment and amount, it is best to check the announcement of the results of the regular shareholders' meeting or inquire with the company's finance department.

Personal Thoughts

ISUPETASIS is a manufacturer of multilayer printed circuit boards (MLBs) for telecommunications equipment, and it is expected to benefit from the expected windfall from the US sanctions against Huawei, as well as the expansion of 5G infrastructure investment.

Recently, it has been pushing to enter the data center MLB market, which is seen as a positive factor in securing future growth engines. However, concerns about a global economic recession and the possibility of a slowdown in IT demand could negatively impact the stock price, so careful judgment is necessary.

Before investing, carefully review the company's financial status and operating performance, compare it with competitors, and refer to the opinions of experts.

Rights Offering

In November 2024, ISUPETASIS decided on a rights offering totaling KRW 400 billion to secure funds for facilities and operations. A rights offering is a method in which a company issues additional shares and secures funds from investors.

This rights offering may result in a decrease in earnings per share (EPS) and a dilution of the stock value. This could cause a short-term drop in the stock price, but if the funds raised are successfully used to expand the business and improve performance, there is also the possibility of a long-term rise in the stock price.

When investing, carefully consider the company's fundamentals and future growth potential.

Today, we looked at the stock price outlook for ISUPETASIS. I hope this information was helpful to you. We'll see you next time with more useful information!