[Click eStock] "Daeduck Electronics, Surprise Earnings Expected Centered on FC-BGA... Target Price Maintained"

[Asia Economy Reporter Myunghwan Lee] Daishin Securities announced on the 26th that it maintains a buy rating and a target price of 45,000 KRW for Daeduck Electronics. This is because the company is expected to deliver second-quarter results that exceed market expectations, centered on flip-chip ball grid array (FC-BGA) technology.

Daishin Securities forecasts Daeduck Electronics' consolidated operating profit for the second quarter of this year to be 58.1 billion KRW, a 337% increase compared to the same period last year. This figure significantly surpasses the market estimate of 49 billion KRW. The annual operating profit for 2022 is estimated at 222 billion KRW, a 206% increase year-over-year, and for 2023, it is projected to rise 26.5% year-over-year to 280.9 billion KRW. These figures also greatly exceed the market estimates of 191.9 billion KRW for 2022 and 237.9 billion KRW for 2023. Daishin Securities expects Daeduck Electronics to demonstrate differentiated growth and profitability compared to its competitors.

Daishin Securities pointed out that among domestic printed circuit board (PCB) companies, only Samsung Electro-Mechanics and Daeduck Electronics focus on FC-BGA as their main business. Among them, Daeduck Electronics is analyzed to generate FC-BGA sales mainly from automotive electronics and home appliances. In particular, the electrification of vehicles and autonomous driving have increased demand for non-memory semiconductors, expanding the FC-BGA market.

Daeduck Electronics has invested 270 billion KRW in the FC-BGA new business from 2020 through this year. Daishin Securities analyzed that business sales will increase from 224.3 billion KRW this year to 412.9 billion KRW in 2023. By 2025, FC-BGA sales are expected to account for about 40% of total sales, approximately 750 billion KRW, emerging as a core business area.

Researcher Kangho Park of Daishin Securities stated, "Daeduck Electronics is considered a defensive alternative amid the declining demand outlook for IT devices in 2022," adding, "The second-quarter and annual results this year are estimated to be surprise performances exceeding market expectations, suggesting that undervaluation and revaluation of its valuation are currently underway."

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