[Click e-Stock] "This Time Is Different... Daeduck Electronics Target Price Raised on Strong Earnings Outlook"

DaiShin Securities announced on March 23 that it is maintaining its “Buy” investment rating on Daeduck Electronics and has raised its target price by 28.4% to 95,000 won.

Kangho Park, a researcher at DaiShin Securities, analyzed, “Operating profit for the first quarter of this year is projected at 44.6 billion won, exceeding the consensus estimate of 40.9 billion won, and sales are also expected to reach 340.8 billion won, up 7.2% from the previous quarter.”

He continued, “With a portfolio centered on semiconductor package substrates (PCB), expanding sales of MLBs for servers, and the initiation of FC BGA supplies related to autonomous driving, there is room for valuation upgrades. This year’s earnings per share (EPS) is expected to increase by 4.9% compared to previous estimates.”

Park added, “Sales growth for server-oriented package substrates remains strong, with high utilization rates, and demand for memory is particularly robust in server applications compared to smartphones or PCs. Additionally, as the number of layers increases, the average selling price (ASP) is expected to rise. As the FC BGA segment turned profitable in the fourth quarter of last year, this will lead to expanded profitability in the first quarter of this year, resulting in increased earnings.”

He also stated, “Following Samsung Electro-Mechanics, the company leads the FC BGA business, primarily focused on automotive applications. However, by supplying FC BGAs for autonomous driving semiconductors to U.S. electric vehicle companies, further technological advancement is possible. Daeduck Electronics is enhancing its differentiated competitiveness as the global robotaxi and autonomous driving markets develop.”

He added, “Given that the company also generates MLB sales related to satellites, it is expected to benefit from SpaceX’s listing on the Nasdaq.”

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