ISU Petasys: Solid 1Q results and promising 2026 outlook; reiterate Buy

研报英文原文证据摘录

ISU Petasys: Solid 1Q results and promising 2026 outlook; reiterate Buy

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ISU Petasys

Solid 1Q results and promising 2026

outlook; reiterate Buy

Reiterate Rating: BUY | PO: 170,000 KRW | Price: 128,000 KRW

1Q review: strong topline growth/OP, but GM compressed 16 May 2026

ISU Petasys (ISU) delivered strong 1Q26 results: sales W340bn (up 35% YoY), slightly Equity

exceeded consensus/our estimate (W334bn/W328bn), while OP W67bn (up 41% YoY;

OPM 20%) met our earlier forecast and street expectation. Key contributors were solid

Key Changesrevenue growth across major customers, such as Google (up 25% YoY; accounted for

52% of ISU’s standalone sales), and upbeat profitability of ISU Petasys Hunan (OPM (W) Previous Current

22% vs 17% for ISU standalone due to more favorable cost structure). On the other 2026E EPS 3,497 3,287

hand, we noticed weaker GM in 1Q (25% vs 28% in 4Q25), which should have been 2027E EPS 4,848 4,815

largely due to higher CCL costs (contributes c.80%+ of ISU’s total raw material cost). 2028E EPS 6,522 6,275

2026E EBITDA (m) 384,451 359,916

2027E EBITDA (m) 528,518 518,554Robust MLB demand visibility: TPU v8, capacity addition

In accordance with Google TPU v8 mass production schedule from mid-2Q26 (see 2028E EBITDA (m) 704,136 673,503

report: MediaTek - Steep TPU ramp by Haas Liu), we expect ISU’s MLB commercial-

scale manufacturing for Google TPU v8 to start at the earliest in 3Q and ramp-up in 4Q. Matt Shin >>

Research Analyst

Given that Google TPU v8 has already been confirmed to use ISU’s MultiLam-based Merrill Lynch (Seoul)

MLB, we assume ISU’s dominant market share position within Google TPU business +82 2 3707 0534 matt.shin2@bofa.com

(server, accelerator, switch) to continue into 2026-27E. While there is potential HDI