"SK Telecom teams up with NVIDIA to transform into an 'AI infrastructure' player"... LG Innotek posts the fastest expansion amid AI substrate shortages [Stocktopia]

[Financial News] Here is a roundup of major brokerage reports as of the morning of June 10.
SK Telecom is being re-evaluated as more than a telecom carrier and is now seen as an 'AI cloud provider' following its AI infrastructure alliance with NVIDIA.
LG Innotek was assessed as having entered a structural growth phase, with sales of FC-BGA (Flip-Chip Ball Grid Array), a substrate for AI semiconductors, expected to grow by more than 200% annually over the next four years. Hyundai Engineering and Construction also retained its top pick status in the nuclear power sector, as the dilution from its 500 billion won convertible bond issuance is seen as modest, while the zero-interest financing instead underscores confidence in growth.
◆SK Telecom (017670)― Shinyoung Securities / Analyst Seo Jeong-yeon
- Target price: 149,000 won (up 35.5% from 110,000 won) | Previous close: 108,100 won
- Investment opinion: Buy (maintained)
Shinyoung Securities raised its target price for SK Telecom to 149,000 won, saying the company is broadening its business identity into an AI infrastructure and physical AI company through its full-stack AI cloud cooperation with NVIDIA. The new target price reflects about 700 billion won in added value for the AI infrastructure business.
Analyst Seo Jeong-yeon of Shinyoung Securities said, "Considering that SK Telecom is responsible for operating IT infrastructure within the SK Group, we believe the benefits from expanded AI investment across group affiliates and the growth of Korea's AI infrastructure market will gradually become more visible."
She also pointed to U.S. NeoCloud companies and said, "Through its partnership with NVIDIA, SK Telecom can now secure GPUs more quickly, and the visibility of its long-term expansion roadmap is gradually improving." This means the company may be re-rated not as a telecom network operator, but as an AI cloud provider that can rapidly secure GPUs.
She added that the ability to secure internal demand from group affiliates is a differentiated strength.※AI factoryThis is a next-generation data center that continuously feeds in electricity and data to mass-produce 'tokens,' the basic unit of AI services. Unlike conventional data centers that store information, it is designed as an 'intelligence factory' dedicated to AI training and inference.※NeoCloudThis refers to emerging providers that buy NVIDIA graphics processing units (GPUs) in large quantities and rent out cloud services dedicated to AI computing. Unlike general cloud services, they are specialized for AI training and inference, so the ability to secure GPUs quickly is directly tied to corporate value.
◆LG Innotek (011070)― HYUNDAI MOTOR SECURITIES / Analyst Kim Jong-bae
- Target price: 1.45 million won (maintained) | Previous close: 1.137 million won
- Investment opinion: Buy (maintained)
HYUNDAI MOTOR SECURITIES maintained its buy rating and target price of 1.45 million won for LG Innotek, saying the company's FC-BGA (Flip-Chip Ball Grid Array) expansion is becoming more concrete.
Analyst Kim Jong-bae of HYUNDAI MOTOR SECURITIES said, "LG Innotek is one of the companies expanding its business base the fastest amid the global FC-BGA shortage." He added, "Following recent investment in Vietnam, additional capex to meet surging future demand is also likely."
He also said, "Even though it is a latecomer, the supply chain for high-spec FC-BGA remains limited, so the global tightness in supply and demand is unlikely to ease easily." He estimated that LG Innotek's FC-BGA sales will post a compound annual growth rate of 202% over the next four years. This means a new growth engine in AI semiconductor substrates is beginning to run in earnest.
In addition, he said growth drivers are broadening in multiple directions, citing optical solutions centered on cameras and sensors as beneficiaries of physical AI, alongside substrates for graphic DRAM (FC-CSP) and radio frequency components (RF-SiP).※Flip-Chip Ball Grid Array (FC-BGA)This is a high-value-added substrate that connects semiconductor chips to the main board. Because the chip is flipped and attached with tiny solder balls, it enables faster signals and better heat dissipation, making it a key component for high-performance semiconductors such as AI CPUs and GPUs.※Physical AIThis refers to AI that goes beyond operating only on a screen and instead has a physical body, like a robot or car, moving in the real world. Autonomous vehicles and humanoid robots are typical examples. They perceive their surroundings through cameras and sensors, make decisions on their own, and carry out actions.
◆Hyundai Engineering and Construction (000720)― LS Securities / Analyst Kim Se-ryeon
- Target price: 200,000 won (down 4.8% from 210,000 won) | Previous close: 122,300 won
- Investment opinion: Buy (maintained)
LS Securities said Hyundai Engineering and Construction's stock value would be diluted by about 3% due to its 500 billion won convertible bond issuance, and lowered its target price to 200,000 won to reflect that dilution. However, it maintained its buy rating and its top pick recommendation in the construction and nuclear power sectors.
Analyst Kim Se-ryeon of LS Securities said, "The company will deliver a clear message to the market about its growth potential while also benefiting from lower interest costs thanks to zero-percent financing."
She also said, "Following the recent correction in energy sector stocks, Hyundai Engineering and Construction's forward price-to-book ratio has fallen to 1.5 times, which is undervalued compared with the minimum 2.0 times PBR level of global nuclear power and plant engineering, procurement and construction (EPC) peers." She added that upside momentum remains, citing expectations for Holtec's SMR project in the United States and a nuclear power order in Bulgaria.
The slight cut in the target price reflects only a mechanical accounting adjustment for dilution, while securing interest-free funding for nuclear power and new energy investments is seen as a positive.※Small Modular Reactor (SMR)This is a very small reactor with an output of 300 megawatts (MW) or less, assembled on site from modules prefabricated in a factory. It is easier to build and can offer better safety than conventional large nuclear plants, drawing attention as a next-generation reactor for data centers and other facilities facing surging power demand.

sms@fnnews.com Seong Min-seo Reporter