[Click eStock] Daeduck Electronics Expects 80% Increase in Operating Profit Next Year

[Asia Economy Reporter Lee Seon-ae] DB Financial Investment started a new analysis on Daeduck Electronics on the 25th with a buy rating and a target price of 30,000 KRW.

Kwon Seong-ryul, a researcher at DB Financial Investment, stated, "Daeduck Electronics, which is thriving as a semiconductor substrate manufacturer, is diversifying its semiconductor package substrate portfolio and restructuring its sales structure focused on profitability by eliminating existing underperforming products. As a result, consolidated operating profit for 2022 is expected to increase by 80%, showing excellent performance," adding, "The target price was calculated by applying a 16x price-to-earnings ratio (PER), which is a 20% discount on the global semiconductor package substrate average PER, to next year's earnings per share (EPS)."

Daeduck Electronics' semiconductor package substrates account for 68% of total sales this year, making it the core business. Until this year, the main components of these semiconductor packages were FC-CSP and FC-BOC used in DDR memory, but from the end of the year, FC-BGA for non-memory applications will begin. From next year, FC-BGA is expected to become a major segment. Consequently, sales of semiconductor package substrates are expected to increase in the more profitable non-memory sector, creating a golden structure that secures both growth and profitability.

The MLB and Module SiP divisions, which had previously hindered performance, are being reorganized with a focus on profitability. In MLB, low-profit automotive products are being reduced, and with an increase in MLB volumes for new wired network equipment, a turnaround is anticipated. Module SiP is expected to escape the deficit cycle by reducing camera module substrates and increasing the proportion of substrates for 5G AiP and DRAM. Researcher Kwon emphasized, "With the increase in semiconductor package substrate sales and restructuring efforts, consolidated operating profit is expected to continue strong performance, reaching 120 billion KRW next year, an 80% increase."

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