The World's No. 1 Company in Competitiveness, Advancing with AI Semiconductor Growth [Click e-Stock]

Leeno Industrial Expected to Post Strong Earnings Growth in Q2
Maintaining Top Global Competitiveness

There is analysis suggesting that Leeno Industrial will continue to benefit steadily from the growth of the global artificial intelligence (AI) semiconductor sector. Furthermore, as its medical device business is also growing, it is expected that the company’s overall performance will continue to improve.

On June 3, LS Securities maintained its target price for Leeno Industrial at 150,000 won and its investment opinion at 'Buy' for these reasons. The previous day's closing price was 92,800 won, indicating that there is still a potential upside of 61.2% remaining.

LS Securities believes that Leeno Industrial’s performance growth is highly likely to be sustained even after the second quarter of this year. As the global AI semiconductor market expands, R&D efforts among big tech companies are strengthening, which in turn is driving up demand for Leeno Industrial’s test sockets.

Hong-Sik Jung, an analyst at LS Securities, explained, “Last year, Leeno Industrial’s operating profit reached 177 billion won, a 42.5% increase year-on-year, and in the first quarter of this year, it grew by 35.4% compared to the same period last year. The strengthening of R&D by big tech companies, in line with global AI semiconductor growth, is leading to increased demand for Leeno’s test sockets.”

On this basis, the company’s export growth rate is also rising steeply. In the first quarter of this year, exports accounted for 79.2% of Leeno Industrial’s total sales. In April as well, Leeno Industrial’s export growth rate was identified as being around 40-45% year-on-year. This strong growth trend is expected to continue in the second quarter of this year.

The probe head business for non-memory applications is also showing high growth. Leeno Industrial manufactures probe heads, which directly contact wafers in probe cards used for wafer-level testing. Related sales increased from 6.5 billion won in 2023 to 10.4 billion won in 2024 and 13.8 billion won in 2025. In the first quarter of this year alone, the company posted 4.9 billion won in sales.

The company has also gained a new growth engine outside of the semiconductor sector: the medical device business. Leeno Industrial’s medical device business is centered around 'ultrasound probes' used in ultrasonic imaging diagnostic equipment. Sales in this segment grew from 27.3 billion won in 2023 to 31.0 billion won in 2024, and to 41.4 billion won in 2025. In the first quarter of this year, sales reached 11.2 billion won, an increase of 11.8% compared to the same period last year.

Leeno Industrial’s IC test sockets boast formidable competitiveness (No. 1 operating profit margin globally). Only Taiwan’s WinWay is considered to be at a comparable level. WinWay has a market capitalization of 15.0678 trillion won and is expected to record an operating profit of 190 billion won this year, based on consensus market forecasts. WinWay’s share price has surged significantly over the past six months due to expectations of increased AI chip testing volume for TSMC.

Leeno Industrial’s operating profit for this year is projected at 216.9 billion won, surpassing WinWay’s 190 billion won. Its operating profit margin is also higher at 48.6%, compared to WinWay’s 28.5%. On the other hand, Leeno Industrial’s expected price-to-earnings ratio (PER) for this year is 40.4 times, while WinWay’s is 91.0 times, making Leeno Industrial relatively undervalued. Analyst Hong-Sik Jung stated, “Considering Leeno Industrial’s IC test socket competitiveness, the company is relatively undervalued compared to global peers. The trend of moving in tandem with AI semiconductor growth is expected to continue.”

This content was produced with the assistance of AI translation services.