Corporate Logo(source: leeno.com)
DS Investment & Securities announced on July 10 that it is maintaining a “Buy” rating on Leeno Industrial (058470), raising its target price from 58,000 won, citing expectations of record-breaking quarterly performance.
Kim Jin-hyung, an analyst at DS Investment & Securities, projected that Leeno Industrial’s second-quarter revenue would reach 95.7 billion won, representing a 22% increase quarter-on-quarter and a 35% rise year-on-year. Operating profit is forecast to come in at 44 billion won, up 26% from the previous quarter and 33% from a year earlier. The operating margin is expected to reach 46%.
“While the second quarter is typically a seasonally strong period, this year’s growth is further supported by increased mass production sales for mid- to low-end smartphones, as well as higher volumes of new device simulation and R&D testing,” Kim explained. He added, “The impact of socket upgrades for mobile applications, mentioned in our first-quarter report, appears to be reflected in the company’s first-half performance.”
Looking ahead, Kim noted, “These positive trends are expected to continue into the second half of the year. Taking seasonality into account, we believe Leeno Industrial is on track to achieve over 20% annual growth.”
Kim also emphasized the significance of R&D revenue from new clients. “With rising demand for B2C artificial intelligence (AI) applications, both the volume and quality of Leeno’s R&D test sockets are increasing. This trend is validated within the ASIC value chain,” he stated.
While a seasonal decline in revenue is anticipated for the third quarter, Kim projected revenue of 86.7 billion won, up 26% year-on-year, with operating profit reaching 38.2 billion won and an operating margin of 44%. “Mass production revenue from new application processors (APs) is expected to begin in Q3,” he said. “This new revenue will come from one of the company’s existing AP R&D clients, which currently holds the No. 1 market share in China’s smartphone AP segment. While the initial revenue contribution may be small, it is expected to grow meaningfully over time.”
For full-year 2025, Kim forecast revenue of 334.8 billion won and operating profit of 148.9 billion won, both up 20% from 2024. A new production facility is scheduled to open in the fourth quarter of 2026, with plans to expand capacity from the current 350–400 billion won level to 900 billion won by 2027.
“Given Leeno Industrial’s earnings strength and the anticipated revenue scale post-2027, a valuation multiple above 30 times is reasonable,” Kim concluded.
*[KOSDAQ] Leeno Industrial(058470) is engaged in the manufacturing and sales of test probes and semiconductor test sockets, as well as medical device components, such as those used in ultrasound diagnostic equipment. Market capitalization is 3.818 trillion won (as of July 9, 2025, closing price).
Corporate Logo(source: leeno.com)
DS Investment & Securities announced on July 10 that it is maintaining a “Buy” rating on Leeno Industrial (058470), raising its target price from 58,000 won, citing expectations of record-breaking quarterly performance.
Kim Jin-hyung, an analyst at DS Investment & Securities, projected that Leeno Industrial’s second-quarter revenue would reach 95.7 billion won, representing a 22% increase quarter-on-quarter and a 35% rise year-on-year. Operating profit is forecast to come in at 44 billion won, up 26% from the previous quarter and 33% from a year earlier. The operating margin is expected to reach 46%.
“While the second quarter is typically a seasonally strong period, this year’s growth is further supported by increased mass production sales for mid- to low-end smartphones, as well as higher volumes of new device simulation and R&D testing,” Kim explained. He added, “The impact of socket upgrades for mobile applications, mentioned in our first-quarter report, appears to be reflected in the company’s first-half performance.”
Looking ahead, Kim noted, “These positive trends are expected to continue into the second half of the year. Taking seasonality into account, we believe Leeno Industrial is on track to achieve over 20% annual growth.”
Kim also emphasized the significance of R&D revenue from new clients. “With rising demand for B2C artificial intelligence (AI) applications, both the volume and quality of Leeno’s R&D test sockets are increasing. This trend is validated within the ASIC value chain,” he stated.
While a seasonal decline in revenue is anticipated for the third quarter, Kim projected revenue of 86.7 billion won, up 26% year-on-year, with operating profit reaching 38.2 billion won and an operating margin of 44%. “Mass production revenue from new application processors (APs) is expected to begin in Q3,” he said. “This new revenue will come from one of the company’s existing AP R&D clients, which currently holds the No. 1 market share in China’s smartphone AP segment. While the initial revenue contribution may be small, it is expected to grow meaningfully over time.”
For full-year 2025, Kim forecast revenue of 334.8 billion won and operating profit of 148.9 billion won, both up 20% from 2024. A new production facility is scheduled to open in the fourth quarter of 2026, with plans to expand capacity from the current 350–400 billion won level to 900 billion won by 2027.
“Given Leeno Industrial’s earnings strength and the anticipated revenue scale post-2027, a valuation multiple above 30 times is reasonable,” Kim concluded.
*[KOSDAQ] Leeno Industrial(058470) is engaged in the manufacturing and sales of test probes and semiconductor test sockets, as well as medical device components, such as those used in ultrasound diagnostic equipment. Market capitalization is 3.818 trillion won (as of July 9, 2025, closing price).