Hanyang Securities: "MK Electronics Expanding Its Reach with AI Packaging Materials; Stock Remains Undervalued"

[Financial News] Hanyang Securities assessed that MK Electronics is expanding its growth base beyond the benefits of SoCAMM2 to encompass AI packaging materials overall. The brokerage said that rising bonding-wire sales, combined with a higher proportion of high-value-added products such as solder balls and plated wires, makes this a time to focus on profit growth rather than revenue growth. However, it did not provide an investment rating or target price. 
On the 2nd, Hanyang Securities researcher Lee Jun-seok said, "SoCAMM2 represents a shift that is transforming MK Electronics’ bonding-wire business into a growth engine for materials used in AI servers." He added, "The company is expected to be revalued as an AI packaging materials company spanning everything from bonding wires to solder balls, rather than merely as a beneficiary of SoCAMM."
MK Electronics ranks first in the global bonding-wire market, with an approximately 22% market share. It has secured more than 150 customers, including Samsung Electronics, SK hynix, and global OSAT companies. Because gold bonding wires are used in LPDDR5 packages for SoCAMM2, which will be applied to NVIDIA Vera CPUs, the expansion of AI servers is expected to translate directly into new demand. Domestic gold-wire sales volume rose from 60,000 km per month last year to 75,000 km in the second quarter of this year.
Hanyang Securities also highlighted the additional growth potential of solder balls. In SoCAMM2, bonding wires connect the chips and substrate, while solder balls connect the package and module PCB. The brokerage explained that supplying solder balls as well, using the company’s existing bonding-wire supply track record, could increase product penetration within the same customer base. It also viewed positively the fact that MK Electronics’ share is expanding as Samsung Electronics diversifies its solder-ball supply chain.
Hanyang Securities forecast MK Electronics’ 2026 consolidated revenue and operating profit at KRW 2.1 trillion and KRW 85 billion, respectively. These figures represent year-on-year increases of 49.6% and 498.7%, respectively. The brokerage expects higher bonding-wire sales and a greater proportion of high-margin products, including plated wires and solder balls, to drive improved profitability.
The brokerage judged that the recent share-price adjustment following the collusion issue has already reflected a substantial portion of the related concerns. It also expects the estimated cost of approximately KRW 10 billion to be treated as a non-operating expense, limiting its impact on operating profit.
Researcher Lee said, "If 2026 is the period when higher bonding-wire sales raise the earnings level of the core business by one step, 2027 will be the phase in which expanded SoCAMM2 mass production, solder paste, palladium alloy, and micro solder balls join as new growth engines." He forecast, "The slope of growth will become even steeper."


[email protected] Kim Kyung-ah Reporter