"ISU Petasys to improve profitability as it expands high-spec products"

Kim Yeon-mi, a researcher at Daol Investment & Securities, said on the 20th that ISU Petasys' third-quarter revenue would rise 46.2% year on year to 433 billion won, while operating profit would increase 64.4% to 96.1 billion won. The operating margin is expected to reach 22.2%, entering the 20% range.

The main drivers of the improved results are selling-price increases and a change in product mix. Profitability is expected to improve as price increases for major customers were brought forward from earlier than initially expected, while volumes of low-margin products declined. The share of high-spec products in new orders is also expected to rise from 14% in the first quarter to the 30% range in the third quarter.

Increased supply of high-spec products for next-generation artificial intelligence (AI) accelerators was also cited as a growth driver. ISU Petasys has completed supply approvals for its TPUv8 products with each design partner and plans to expand supply of high-spec products using its secured production capacity (CAPA). Daol Investment & Securities forecast next year's revenue and operating profit at 2.3192 trillion won and 571.1 billion won, respectively.

Researcher Kim said, “Further selling-price increases are expected from year-end as copper-clad laminate (CCL) prices rise,” and noted, “The potential for higher profitability from an improved product mix and the company's medium- to long-term growth prospects deserve attention.”