Staying the steady course as SOCAMM2 begins to ramp

Research evidence excerpt

Staying the steady course as SOCAMM2 begins to ramp

Global Research

3 July 2026ab

Simmtech Equities

KoreaStaying the steady course as SOCAMM2 begins

to ramp Electric Components & Equipment

12-month rating Buy

12m price target Won170,000Correction on press citing potential PCB ASP pressure looks overdone

Prior : Won148,000

Simmtech's share price yesterday saw a sharp correction c.-21%, we believe on the back

of broad AI exposed name de-risking but also press (link) suggesting Korea PCB vendors Price (02 Jul 2026) Won124,700

could potentially see ASP pressure re-emerging into 2H26, amidst rising material costs, RIC: 222800.KQ BBG: 222800 KS

posing as margin headwind. Contrary to press however, based on our supply chain

checks, we believe Simmtech has yet to observe customer pressure to lower pricing, Trading data and key metrics

after having been able to raise like-for-like pricing across different PCB/Substrate SKUs in 52-wk range Won157,300-21,650

Mar/Apr. We note that in the context of pricing typically negotiated on an annual/bi- Market cap. Won4,657b/US$3.01b

annual basis, it is unlikely to see a quick reversal in ASP agreement with customers likely Shares o/s 37.3m (ORD)

to prioritize supply availability. While it is common to have PCB vendors typically pass on, Free float 67%

to some degree, operating leverage gains (often with higher volume products) via price Avg. daily volume ('000) 951

cuts over time, factoring in spec up requirements (>layer count, area size, material Avg. daily value (m) Won100,074.5

composition change etc.), we see blended PCB/Substrate ASP likely to be trending up Common s/h equity (12/26E) Won734b

going forwards. With no change in ASP course into 2H26 and yet trading at an P/BV (12/26E) 6.3x