KOSPIElectronic Components007660

Isupetasys

₩122,000▼ 1.13%2026-10-02 close

Market Cap

₩8.9T

Turnover

₩56.1B

Volume

460,000 shares

Shares out.

73.4M

PER

40.5×

PBR

9.5×

EPS

₩2,746

Dividend Yield

—

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Prices as of the 2026-10-02 close

Report overview

AI Boards: Capacity, Pricing and Mix Converge

Isu Petasys has set successive record quarterly revenue and operating profit through the second quarter of 2026, entering a phase where capacity additions, a richer multi-lam mix and price negotiations overlap, while customer concentration, yield and the AI capex cycle remain on the other side of the ledger.

1
Consolidated 2025 revenue was KRW 1,088.0bn with operating profit of KRW 204.7bn (18.8% margin), the first year above the KRW 1tn mark, followed by second-quarter 2026 revenue of KRW 379.9bn and operating profit of KRW 77.1bn (20.3% margin).
2
Second-quarter 2026 order backlog was reported at KRW 622.2bn, up 97% year on year, with the multi-lam share of that backlog rising from 11% in the first quarter to 23% in the second.
3
Price talks with customers began in August and are slated to conclude in October, with an average increase of around 15% under discussion and application reported to start in the fourth quarter.
4
Ramp-up at the fifth and sixth plants and follow-on equipment investment for the sixth plant are under review, and the company expects a mid- to long-term revenue capacity base of over KRW 2tn if plans proceed.
5
On the other side sit concentration in one large customer, the still-immature yield of the multi-lam process, and the possibility of slower big-tech AI capital spending.

Business structure

Isu Petasys, part of the Isu Group, focuses on high-layer-count printed circuit boards (MLB) for telecom and network equipment and servers.

It runs four domestic plants and a research center plus production and sales entities in China, the United States, Hong Kong and Thailand, builds high-layer MLB entirely to order, and derives more than 95% of revenue from exports (FnGuide company profile).

The revenue base splits between headquarters, which handles high- and ultra-high-layer boards, and the Chinese unit handling mid-layer boards of roughly 12 to 18 layers: Korea Investment & Securities noted that of consolidated third-quarter 2025 revenue of KRW 296.1bn, the parent booked KRW 258.3bn and the Chinese unit KRW 58.5bn (November 2025 report).

With four plants the company is described as number one domestically and around third globally, with Nvidia, Google, Microsoft, Meta and Amazon cited among its main customers (November 2025 press report).

At a July 2026 corporate day the company said one large North American customer accounts for 50% of sales and is a high-volume, narrow-model buyer (per SK Securities notes).

The product axis is shifting from VIPPO-process boards toward multi-lam boards, which repeat lamination, drilling and plating steps, and toward HDI-bonded hybrids.

Per the company, multi-lam stacks an MLB on an MLB with the lower block delivering power and the upper block carrying signals, which suits large-area, high-layer boards favored in switches and routers, while HDI helps shorten signal paths and is centered on accelerators.

Competition is negligible domestically but global rivals include TTM Technologies of the United States and Chinese and Taiwanese peers. Domestically the company is also working with AI chip firms such as FuriosaAI and Rebellions on production and commercialization of server boards.

Earnings trend

Quarterly revenue · Operating profit

₩241.4B₩42.1B25Q2₩296.1B₩58.4B25Q3₩298B₩56.5B25Q4₩340.3B₩67.2B26Q1₩379.9B₩77.1B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩642.9B₩116.6B2022₩675.3B₩62.2B2023₩836.9B₩101.9B2024₩1.1T₩204.7B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩241.4B	₩42.1B	17.4%
2025Q3	₩296.1B	₩58.4B	19.7%
2025Q4	₩298B	₩56.5B	19.0%
2026Q1	₩340.3B	₩67.2B	19.8%
2026Q2	₩379.9B	₩77.1B	20.3%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩642.9B	₩116.6B	₩102.5B	18.1%	46.1%	145.6%
2023	₩675.3B	₩62.2B	₩47.7B	9.2%	17.9%	134.8%
2024	₩836.9B	₩101.9B	₩74B	12.2%	22.6%	141.2%
2025	₩1.1T	₩204.7B	₩160.5B	18.8%	21.2%	70.5%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The earnings track passed a trough in 2023 and has expanded for two straight years.

Revenue rose from KRW 642.9bn in 2022 to KRW 675.3bn in 2023, KRW 836.9bn in 2024 and KRW 1,088.0bn in 2025, while operating profit fell from KRW 116.6bn (18.1% margin) in 2022 to KRW 62.2bn (9.2%) in 2023 before recovering to KRW 101.9bn (12.2%) in 2024 and KRW 204.7bn (18.8%) in 2025.

Net profit attributable to owners reached KRW 160.5bn in 2025 and operating cash flow KRW 168.8bn, so profit and cash generation grew together.

On the balance sheet, total equity moved from KRW 327.5bn with a 141.2% debt-to-equity ratio in 2024 to KRW 756.2bn with a 70.5% ratio in 2025, reflecting both capital strengthening and retained profit.

The quarterly path is even clearer: revenue and operating profit went from KRW 241.4bn and KRW 42.1bn in the second quarter of 2025 to KRW 296.1bn and KRW 58.4bn, KRW 298.0bn and KRW 56.5bn, KRW 340.3bn and KRW 67.2bn, and KRW 379.9bn and KRW 77.1bn, five straight quarters of revenue growth with the operating margin climbing from 17.4% to 20.3%.

The second-quarter improvement was attributed to parent-level monthly average revenue rising from KRW 99.1bn to KRW 102.7bn, the multi-lam revenue share widening from 7% to 11%, and the parent operating margin improving from 16.6% to 17.8% (per Meritz Securities, August 2026).

A drop in the low-value server share of revenue from 14% in the first quarter to 9% in the second was also cited as a mix driver.

Still, second-quarter 2026 net profit attributable to owners of KRW 59.7bn remained well below operating profit of KRW 77.1bn, indicating that tax and non-operating items continue to hold net profit growth below operating profit growth.

Summing the latest four quarters, from the third quarter of 2025 through the second quarter of 2026, revenue reaches roughly KRW 1,314.3bn and net profit attributable to owners about KRW 201.0bn, already above the full-year 2025 figures.

Industry analysis

The end market is investment in AI accelerators and data center network infrastructure such as switches and routers.

Notes from a July 2026 corporate day argued that despite accelerating ramp-up at the fifth and sixth Daegu plants, the shortage is severe enough to require another plant, that equipment mainboards are the tightest board category, and that de-risking away from China and Japan is highlighting Korean mainboard makers (SK Securities).

SK Securities also noted in January 2026 that equipment MLB is being pushed beyond today's top specification of about 48 layers, that mass production above 50 layers is physically difficult with current technology, and that the workaround of applying HDI to some layers or developing hybrid boards with different upper and lower specifications had already entered shortage from 2025.

The cycle position looks like one where both volume and price are rising. Price talks began in August and are due to wrap up in October, with application from the fourth quarter and room for renegotiation should raw material prices rise further (Asia Economy, September 1, 2026).

The competitive structure is concentrated among a few suppliers. Trade reporting has placed TTM of the United States at a low-30% share of high-layer MLB above 18 layers, Isu Petasys in the mid-to-high teens, followed by Shennan and WUS of China and GCE of Taiwan.

Domestic peers sit in different product niches: Daeduck Electronics also makes MLB but has concentrated its resources on flip-chip ball grid array substrates.

At the same time, Taiwanese and Chinese makers are attempting to enter high-layer MLB while Japanese firms expand substrate capacity, so whether the technology edge holds and whether pricing pressure emerges require ongoing monitoring.

Outlook

On confirmed facts, the watch items ahead run along three lines: capacity, mix and pricing.

Revenue-based capacity was reported to expand in steps from KRW 120bn per month in the second quarter of 2026 to KRW 150bn in the first quarter of 2027 and KRW 180bn in the second quarter of 2028 (Asia Economy, September 1, 2026).

The company said it decided to convert part of its VIPPO capacity, lifting multi-lam capacity from 10.5K to 13K square meters per month as of the first half of 2027 (July 2026 corporate day).

For follow-on investment at the sixth plant, it said the amount, scope and timing will be fixed through internal review and board approval, funded from cash on hand and operating cash flow, with equipment orders proceeding in stages from as early as the second half of 2026, and that on plan it expects a mid- to long-term revenue capacity base of more than about KRW 2tn (August 2026).

Investment in a seventh plant dedicated to HDI, one type of multi-lam board, was reported to be under review. On the demand side, backlog has become the key metric.

The company explained that after operating with three to four month lead times, large orders from network customers pushed it into a backlog accumulation phase, with orders still rising in the second quarter.

Beyond core customers Nvidia and Google, another big-tech name was reported to have joined as a new customer, with Amazon Web Services among those cited in the market. Management said its 2026 goal is to meet market consensus, with communication on 2027 to follow later.

Valuation

PER

40.5×

PBR

9.5×

ROE

26.4%

EPS

₩2,746

BPS

₩11,706

Dividend per share

—

The company's profit base has changed quickly over the past two years. The operating margin, which fell to single digits in 2023, climbed to 18.8% in 2025 and 20.3% in the second quarter of 2026, effectively resetting the earnings level, so the denominator of any multiple keeps moving.

The earnings multiple applied to the current price sits above that of domestic printed circuit board peers, and the shares also carry a sizable premium to net assets.

That said, total equity more than doubled in 2025 while the debt-to-equity ratio fell from 141.2% to 70.5%, which mechanically lowered net-asset-based multiples.

On shareholder returns, reporting based on company filings noted a target of maintaining a 25% to 30% payout ratio while the recent ratio came in around the low teens, below that target band (Bloter, May 2026).

Broker views have been relatively aligned: as of August 19, 2026, Kiwoom Securities was reported to have maintained a target price of KRW 190,000 while Hana Securities and Meritz Securities presented KRW 180,000 and KRW 160,000 respectively.

Ultimately the justification for the multiple depends on how fast new capacity converts into revenue and on multi-lam yields and the outcome of price negotiations, all three of which are still in progress.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Backlog and mix improving together

Second-quarter 2026 backlog was reported at KRW 622.2bn, up 97% year on year, with the multi-lam share of backlog rising from 11% to 23% quarter on quarter. Management's argument is that an accumulating backlog lengthens medium-term visibility beyond a single quarter.

Kwon Min-gyu of Kiwoom Securities said the backlog would flow into third-quarter results and drive further average selling price gains and revenue growth. The actual pace of revenue recognition still has to be confirmed in quarterly results.

Price increase talks under way

The company began price discussions with customers in August with a planned conclusion in October, and the increase was reported to apply from the fourth quarter with room for renegotiation if raw material prices rise further. An average increase of around 15% is reported to be under discussion.

Unlike volume growth, price flows straight into margin without additional equipment. The outcome and scope of application, however, have not yet been confirmed in a filing.

Structural shortage and an expansion pipeline

Hana Securities judged in September 2025 that despite large capacity additions, the global MLB shortage would persist for a considerable period as multi-lam processes are adopted in major customers' next-generation accelerators and network switches.

The company said equipment orders and installation for the sixth plant would proceed in stages from as early as the second half of 2026 and that on plan it expects a revenue capacity base of more than about KRW 2tn over the medium to long term.

If capacity is chasing demand, room remains for improvement in utilization and operating margin. Conversely, delays in expansion could hamper volume response.

Bear factors

Concentration in one customer

At a July 2026 corporate day the company said a large North American customer accounts for 50% of sales. That structure means results can swing if one customer's product roadmap or vendor policy changes.

The same material framed the market's concern that share could fall in the customer's next or subsequent accelerator models given a dual-chip structure. The company replied that it expects volumes at that customer to grow and share to hold at similar levels in the subsequent product generation.

Multi-lam yields still at an early stage

Multi-lam products multiply every process step, including lamination, drilling, plating and outer-layer patterning, by two to three times versus conventional MLB, so even small defects can shake yields and temporarily constrain margins.

The company said current yields, combining samples and mass production, are in the mid-80% range, with sample volume currently larger. Yields on the existing VIPPO process were cited in the mid-90% range.

If the yield curve lags while the mix shifts rapidly to multi-lam, margin improvement could be gentler than expected.

Dependence on the AI capex cycle

Almost all revenue is exported and end demand is tied to data center investment by North American hyperscalers. With exports accounting for more than 95% of revenue, results are heavily exposed to currency moves and global demand (FnGuide company profile).

If big-tech capital spending plans are adjusted, backlog visibility shortens and filling newly added capacity becomes the challenge. This variable lies outside the company's control.

Risk factors

Execution risk in expansion and qualification

Hwang Ji-hyun of NH Investment & Securities said delays in improving multi-lam yields and in passing new product quality tests could be downside risks. The specific amount, scope and timing of follow-on investment at the sixth plant are to be finalized through internal review and board approval, and are not yet fixed.

If expansion schedules and qualification timing fall out of step, conversion of backlog into revenue can be pushed back.

Intensifying competition and vendor diversification

The high-layer MLB market is described as TTM of the United States at a low-30% share, Isu Petasys in the mid-to-high teens, followed by Shennan and WUS of China and GCE of Taiwan.

With Taiwanese and Chinese firms attempting to enter high-layer MLB and Japanese firms expanding substrate capacity, commentators note the need to keep checking whether the technology edge holds and whether price competition emerges.

A further medium-term variable is that, in a shortage, customers unable to secure enough volume have more incentive to cultivate second vendors.

Capital expenditure and financial burden

The debt-to-equity ratio fell to 70.5% in 2025 from 141.2% in 2024, with operating cash flow of KRW 168.8bn. The company said it would fund investment from cash on hand and future operating cash flow, weighing size and timing within the bounds of financial soundness.

Still, in a continuous investment phase running from the fifth and sixth plants to a seventh under review, higher depreciation and early operating costs can hit margins with a lag. Should demand prove weaker than expected, fixed-cost burden rises.

What to watch next

October 2026
Price talks that began in August are reported to conclude in October with the increase applying from the fourth quarter. The settled level and the product scope of application will be the key variable for fourth-quarter margins.
During November 2026 (third-quarter results expected)
Alongside third-quarter revenue and operating margin, watch backlog, the multi-lam revenue share and the trend in parent-level monthly average revenue. Whether the 20.3% operating margin of the second quarter of 2026 holds or improves will show how real the mix improvement is.
Second half of 2026 to first half of 2027
The company said the amount, scope and timing of follow-on investment at the sixth plant will be finalized via board approval, with equipment orders proceeding in stages from as early as the second half of 2026. Whether and at what scale a facility investment filing appears is the checkpoint for the reality of the expansion pipeline.
First half of 2027
The company said converting part of its VIPPO capacity lifts multi-lam capacity from 10.5K to 13K square meters per month in the first half of 2027. Track both the progress of that conversion and whether yields stabilize alongside it.
Quarterly from the fourth quarter of 2026
Check whether North American hyperscalers maintain data center capex plans in their quarterly results. Given reports that a new big-tech customer has joined, the timing of that customer's production start and whether its volumes show up in results are also worth watching.

Overall view

Isu Petasys is in a profit expansion phase: operating profit fell from KRW 116.6bn in 2022 to KRW 62.2bn in 2023 before recovering to KRW 101.9bn in 2024 and KRW 204.7bn in 2025, with the margin returning from 9.2% to 18.8%.

Quarterly figures show five consecutive quarters of revenue growth from the second quarter of 2025 through the second quarter of 2026 and an operating margin climbing from 17.4% to 20.3%, evidencing simultaneous volume and mix improvement.

Reported second-quarter 2026 backlog of KRW 622.2bn, up 97% year on year, with the multi-lam share of backlog reaching 23%, is the bullish case for medium-term visibility.

Layered on top are price negotiations due to conclude in October and the company's expectation of a revenue capacity base above KRW 2tn if plans proceed.

On the other side sit three uncertainties: a single customer at 50% of sales, multi-lam yields still in the mid-80% range including samples and mass production, and the pace of the AI capital spending cycle itself.

Earnings multiples sit above domestic peers and the shares carry a sizable premium to net assets, so whether the speed of converting new capacity into revenue and the outcomes on yield and pricing support those multiples is the task ahead. This report is for information purposes only and contains no buy or sell opinion and no target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

Show 18 more articles and sources

Report written 2026-09-05 · Data as of 2026-09-04

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.