[Click eStock] "Doosan Tesna, Mobile Product Competition Intensifies... Target Price Down"

Shinhan Investment Corp. on the 30th downgraded the target price of Doosan Tesna to 55,000 KRW, stating that "due to intensified competition in mobile products, the valuation (stock price level relative to corporate value) has been lowered."

On the same day, Namgung Hyun, a researcher at Shinhan Investment Corp., said, "Doosan Tesna's operating profit this year is expected to increase by 23.3% compared to the previous year, reaching 75 billion KRW. The second-quarter performance is expected to exceed market expectations with an operating profit of 17.6 billion KRW, surpassing the market consensus of 16 billion KRW." Since 2020, the company has been executing capital expenditures of 100 to 200 billion KRW annually, continuing to expand production capacity and sales growth.

Despite the sluggish performance of mobile processors (AP) and image sensors (CIS) due to intensified competition in mobile single-chip systems (SoC), performance improvement is expected. Researcher Nam said, "This background is thanks to the recovery of the vehicle SoC utilization rate in the second quarter. Although the utilization rate declined in the first quarter due to customer process improvements, it operated normally in the second quarter, and vehicle sales are expected to increase by 55%."

Researcher Nam emphasized, "The possibility of securing orders from new customers and the announcement of a 220 billion KRW scale expansion confirm the mid- to long-term growth plan," adding, "Although nothing has been officially confirmed regarding new outsourced volumes, customers prefer outsourced post-process production (OSAT) after securing sufficient production capacity."

He continued, "The expansion announcement is judged as a move to secure overseas customer volumes in the mid to long term," and "the investment opinion is maintained as a buy in a phase where portfolio diversification (vehicle CIS, AI accelerators) and full-scale development (vehicle and notebook SoCs) are confirmed."

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