Neotis Expects 40% Revenue Increase Due to Rising Demand for AI Server Microbits

Neotis anticipates an increase in microbit demand due to the high-layer and high-specification printed circuit boards (PCBs) for AI servers. This year's revenue is projected to reach 96.16 billion won, marking a 40.0% increase, while operating profit is estimated to rise by 127.4% to 17.69 billion won. Revenue from the microbit business has surged from 23 billion won last year to 8.1 billion won in the first quarter of this year, a 73% increase. PCB drill bits, which are tools for creating tiny holes in circuit boards, are required in greater quantities for AI server PCBs compared to standard products. Neotis holds a domestic market share of approximately 40% for drill bits and about 70% for routers. Drill bits account for about 7% of the manufacturing cost of high-layer PCBs, and even if bit prices rise by 20%, the overall manufacturing cost burden is calculated to increase by only about 1.4%. The quality of processing and yield stability for AI server PCBs is becoming increasingly important, and Hanyang Securities has analyzed that the adoption of high-spec coating bits will rise. Neotis's router sales for SoCAMM2 are expected to increase starting in the second half of this year. As investments in AI servers expand, the demand for PCBs and precision machining tools is also on the rise.

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