[Click eStock] Daeduck Electronics, Investment Proven by Strong Performance

[Asia Economy Reporter Lee Seon-ae] Daishin Securities announced on the 22nd that it maintains a buy rating and a target price of 45,000 KRW for Daeduck Electronics. This is due to the expected record-breaking operating profit in the third quarter and strong performance. Kangho Park, a researcher at Daishin Securities, stated, "Although there are concerns about a slowdown in IT front-end demand, the FC BGA boom is expected to continue through 2023, so we maintain it as the top pick among small and mid-cap stocks."

From 2022 to 2023, with the start and growth of the FC BGA business, the company is expected to transition into a non-memory focused semiconductor packaging firm. A total investment of 540 billion KRW is planned for the FC BGA sector through 2024. FC BGA sales are estimated to increase to 261.8 billion KRW in 2022, 409.9 billion KRW in 2023, and 479.5 billion KRW in 2024. Its share is also expected to rise to 19%, 25%, and 27%, respectively, making it a core area for Daeduck Electronics.

The main sectors for FC BGA are automobiles, automotive electronics, and autonomous driving. As the proportion of electric vehicles expands, demand for semiconductors (non-memory) that serve as CPUs will increase, and FC BGA is expected to grow alongside.

Since Daeduck Electronics has secured its position in the early market, among domestic PCB companies, only Samsung Electro-Mechanics and Daeduck Electronics have focused on FC BGA. While Samsung Electro-Mechanics mainly serves PCs and servers, Daeduck Electronics generates FC BGA sales centered on automotive electronics and home appliances. In particular, the FC BGA market is expanding due to increased demand for semiconductors (non-memory) supporting automotive electronics and autonomous driving functions. Sales and operating profit in 2022 and 2023 are expected to reach record highs.

Researcher Park noted, "Additional sales and profits will arise from new FC BGA investments, and despite volatility in the IT market, Daeduck Electronics is expected to continue its strong performance," adding, "Annual operating profit is projected at 250.1 billion KRW (245%) in 2022 and 321.7 billion KRW (28.6%) in 2023, significantly exceeding consensus estimates (234.1 billion KRW in 2022 / 286 billion KRW in 2023), demonstrating differentiated growth and profitability compared to competitors."

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