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KB Securities Raises DB HiTek Target Price
From 170,000 Won to 200,000 Won

On September 9, KB Securities maintained its "Buy" investment rating for DB HiTek, raising the target price from 170,000 won to 200,000 won.

Changmin Lee, research analyst at KB Securities, stated, "DB HiTek is expected to benefit significantly from the surging demand for artificial intelligence (AI) data centers and robotics in China."

Lee estimated DB HiTek’s annual results for this year will reach sales of 1.6 trillion won and operating profit of 424.2 billion won, representing year-on-year increases of 15% and 53%, respectively. He explained that while supply capacity in the 8-inch foundry market is declining as leading companies such as TSMC and Samsung Electronics focus mainly on the 12-inch segment, demand is now rapidly growing, particularly from AI data centers and robotics applications in China.

He further noted that photonics-related production among Taiwanese companies continues to center on 8-inch foundries, which is expected to deepen the supply-demand imbalance. As competitors have carried out repeated price hikes of 10% to 20%, it is likely that DB HiTek will implement additional price increases within the year, and this trend is projected to continue into 2027. He added, "With the stock’s undervaluation becoming much more apparent, a steep rise in share price is anticipated going forward."

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