[Click eStock] "Daeduck Electronics, Improving Mainly in Memory"

Hana Securities on the 4th raised the target price for Daeduck Electronics to 38,000 KRW, citing expectations for a memory turnaround and FCBGA level-up.

Kim Rok-ho, a researcher at Hana Securities, stated in a report on the same day, "Daeduck Electronics' operating profit fell short of consensus due to a larger-than-expected decline in non-memory sales," adding, "On the other hand, sales of memory package substrates increased by 32% quarter-on-quarter, driving the company's overall sales growth."

Researcher Kim Rok-ho forecasted, "Starting from the second quarter results as the bottom, performance will improve each quarter in the third and fourth quarters," and "Similar to the second quarter, sales are expected to be strong, centered on memory package substrates."

He noted, "Inventory adjustments by mobile and PC customers appear to have been largely completed, and server-oriented DDR5 demand has been stronger than expected, driving overall company performance," and "DDR5 sales surged from the 20 billion KRW range in the first quarter of 2023 to 40 billion KRW in the second quarter, and this trend is expected to continue in the second half of the year."

He continued, "The turnaround timing for memory package substrates has been brought forward compared to initial expectations due to strong demand for high value-added products such as DDR5," explaining, "Due to DDR5-centered demand, the operating profit margin for memory package substrates has been revised upward from previous estimates."

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