Oh Gwajang

Simmtech delivered a strong earnings beat with operating profit 33% above consensus, driven by high-margin socket products and overall blended ASP improvement. The company aggressively raised full-year guidance, and the new socket business is experiencing step-function revenue growth. Valuations remain reasonable, and the cycle could last at least another year given still-low PCB and substrate pricing versus prior cycles.

Daeduck Electronics (008060.KS) is a semiconductor PCB and substrate company benefiting from a trickle-down effect: as Samsung Electro-Mechanics shifts capacity to AI/data center packages, a shortage in automotive and other legacy substrates emerges, which Daeduck captures. The company is increasing MLB (multilayer board) exposure, and new Capex of 5,100B won through 2027 supports growth into non-memory IC substrates. Valuation at 25x forward P/E is not cheap but not expensive given the growth trajectory.

Hanwha Engine (012450.KS) has fallen ~52% from highs despite securing 1.4 trillion won in new orders in H1 alone, nearly matching last year's full-year total. The company is expanding capacity (new medium-speed engine plant), and with 50% annual EPS growth projected through 2028, the current 7-8x forward P/E is unjustifiably cheap. A normalization to 20x P/E would imply over 100% upside. The market is ignoring the structural growth from LNG carriers and potential data center power generation engines.

Simmtech (222800.KQ) is a leader in SIP (System-in-Package) substrates, which are increasingly adopted for AI and edge devices. The stock is highly sensitive to Nvidia’s next-gen Rubin platform, expected to use SIP substrate (SoCAM 2), creating a new demand driver. The stock is volatile but cheap relative to its AI-driven opportunity; recent pullback from highs offers entry.