Reno Industries (058470) recorded a decline in the 4% range, pressured by profit-taking following a recent sharp rally, despite positive earnings forecasts from securities firms.

On the Korea Exchange (KRX) market on the 7th, Reno Industries closed at 71,900 won, down 3,000 won (4.27%) from the previous trading day. The weakness is attributed to the release of profit-taking demand driven by the recent stock price increase, despite news of earnings upgrades from brokerages.

On this day, LS Securities raised its estimate for Reno Industries' second-quarter 2026 operating profit from 679 billion won to 702 billion won. This represents a 31.4% increase year-over-year. LS Securities noted that exports of Leeno Pin and IC test sockets in April and May increased by 33.2% year-over-year in dollar terms, and by 42.3% in won terms when currency exchange effects are reflected.

Considering that exports account for approximately 80% of Reno Industries' revenue, the brokerage projected that even under conservative assumptions for June supply volumes, both second-quarter revenue and profit could grow by more than 30%.

Reno Industries, which holds global competitiveness in semiconductor test sockets and Leeno Pin segments, continues to draw expectations of benefits from the expansion of the AI server high-performance semiconductor, HBM (High Bandwidth Memory), and advanced packaging markets. The increase in demand for high-performance semiconductor testing is forecast to drive future earnings improvement.

However, the intraday stock price was unaffected by the brokerage's target price increase, instead influenced by profit-taking following the short-term surge and a contraction in overall market investment sentiment. The market views whether future actual earnings will meet brokerage expectations as the key variable that will determine the stock's further direction.

[This article was written with the assistance of AI. This article does not constitute investment advice, and any losses resulting from virtual asset investments are the sole responsibility of the investor.]