Isu Petasys has surpassed the 1 trillion won mark in annual revenue for the first time in 2025. This is driven by explosive demand for high-layer printed circuit boards (PCBs) used in artificial intelligence (AI) servers. Market attention is now shifting beyond simple AI demand formation to how quickly the company's production capacity expansion translates into actual revenue and operating profit.

Revenue Exceeds 1 Trillion Won... Operating Profit Jumps 101%

According to a disclosure by the Korea Exchange, Isu Petasys recorded consolidated revenue of 1.0887 trillion won in 2025, up 30.1% from the previous year. Operating profit surged 101.0% to 204.72 billion won, while net income climbed 116.8% to 160.48 billion won. Consequently, the operating profit margin for 2025 was tallied at approximately 18.8%.

The fact that the operating profit growth rate (101.0%) significantly outpaces the revenue growth rate (30.1%) demonstrates that product mix upgrading and improved production efficiency were achieved alongside top-line growth. Isu Petasys's flagship products are high-layer PCBs used in servers and network equipment. They are essential components for AI servers and high-performance network equipment, where signal processing volume and transmission speed are critical.

However, supply relationships with specific customers frequently mentioned in the market—such as Nvidia, Google, and Microsoft—cannot be confirmed until official disclosures are made. Therefore, it is advisable to approach the analysis focusing on the demand, production capacity, and performance of boards for AI accelerators and network equipment, rather than relying on speculations about specific clients.

Key Challenges: Successful Paid-in Capital Increase and Factory Expansion

The next step in expanding performance is increasing production capacity. According to the securities issuance report filed with the Korea Exchange, Isu Petasys issued 10,162,800 new shares through a paid-in capital increase in 2025. Deviating from its initial plan to pursue mergers and acquisitions (M&A), the company revised its strategy to allocate a significant portion of the raised funds toward factory expansion and facility investment.

Investors' focus has also shifted from 'M&A effects' to whether the expansion funds will actually lead to increased production volume and profitability. With the issuance of new shares through the paid-in capital increase, the company faces the challenge of improving per-share performance by ensuring that operating and net profits outpace the growth rate of the total number of outstanding shares, moving beyond simple revenue growth.

Early Operation of Plant 5 and Yield of Multi-Layer Boards

The timing of the capacity expansion is also a crucial variable. According to the securities industry, analyses suggest that some production lines at Isu Petasys's Plant 5 began operations earlier than expected. Citing a brokerage report covered by E-Daily, the phased ramp-up of Plant 5 and robust sales of boards for AI accelerators and network switches were highlighted as the primary drivers for the performance expansion.

For high-layer boards, simply completing a factory does not immediately yield maximum output. Following equipment installation, the processes of trial production, customer certification, and yield stabilization must take place, inevitably creating a time lag between nominal capacity and actual sellable volume.

According to an analysis by NH Investment & Securities reported by Buffett Research Lab, the company is pushing forward plans to expedite the timeline for securing multi-layer product production capacity to meet increasing demand by 2027. (For reference, the 2026 performance expansion figures presented by the brokerage are merely forecasts, not confirmed figures.)

Multi-layering is a highly advanced method that increases the number of circuit layers by combining multiple boards, and it is a technology experiencing growing demand as AI device performance evolves. However, due to the complex production process and the high risk of manufacturing losses, an increase in volume may not directly translate to increased profit unless the yield is stabilized.

Adjustment in Shareholder Return Rate and Stock Price Volatility Factors

In terms of capital allocation, the shareholder return rate is also a key metric to watch. According to the disclosure, Isu Petasys set its 2025 shareholder return rate at 10.7%, citing cash needs driven by its entry into a massive expansion phase. This is lower than the 14.5% recorded in 2024. However, if the expansion is completed and cash flow improves, there is potential for expanding shareholder returns in the future.

A cautious approach is also necessary regarding the recent stock price correction. E-Daily analyzed that the correction of major domestic growth stocks in July was caused by concerns over semiconductor capacity expansion in China, a breakdown of technical support levels, and cautious sentiment ahead of earnings announcements from global semiconductor companies and hyperscalers. In particular, the downward adjustment of the high valuations (valuation multiples) previously assigned to AI and semiconductor companies was pointed out as a primary factor behind the stock price decline. It is important to note that even if performance grows, stock prices can face corrections if the market's applied price-to-earnings ratio (PER) declines.

Three Key Points to Monitor Going Forward

1. Plant 5 Operating Rate: It must be verified whether the facilities are operating as planned, passing customer certifications, and consistently translating into actual sales volume. 2. Yield and Profitability of Multi-Layer Products: Even if the proportion of high-value-added products increases, a simultaneous rise in manufacturing difficulty and defect rates could hinder the achievement of target profit margins. 3. Effects of the Paid-in Capital Increase: From a per-share value perspective, the core focus is whether the secured funds will successfully boost production capacity and operating profit enough to offset the share dilution caused by the new share issuance.

Isu Petasys has established a new milestone, surpassing 1 trillion won in revenue and 200 billion won in operating profit. Moving forward, rather than the mere existence of AI board demand, the market should use the speed at which the expanded factories reach stable operations, and the ability to simultaneously increase the production volume and profitability of highly complex products, as the key viewing points for the company's upcoming earnings.

[This article is provided as reference material for investment decisions and does not recommend the purchase or sale of any specific stock. The responsibility for stock investments lies solely with the investor.] [This article was written with the assistance of AI.]