[Click e-Stock] "Daejoo Electronic Materials: Earnings and Momentum Combined... Target Price Raised"

Target Price Raised by 12% to 160,000 Won

On April 8, NH Investment & Securities raised its target price for Daejoo Electronic Materials to 160,000 won and maintained its 'Buy' investment opinion. The company explained that the earnings improvement trend is clear and that Daejoo Electronic Materials also has momentum related to the space solar power market.

NH Investment & Securities researcher Juminwoo stated that, thanks to strong downstream demand, performance in challenger materials such as multilayer ceramic capacitors (MLCCs), chip components, and materials for solar cells is showing significant strength. He estimated this year's challenger material sales at 17.58 billion won, a 17% increase from his previous estimate.

Of this, sales of materials for solar cells are projected to reach 4.4 billion won, up 100% year-on-year, driven by the operation of a U.S. plant by an existing customer. Sales of MLCC and chip component materials are expected to grow 15% during the same period to 12.45 billion won, thanks to robust downstream demand.

The researcher commented, "In the short term, whether Daejoo Electronic Materials can successfully supply HJT (heterojunction) paste to the No.1 space client in North America is a key factor for the stock price." He added, "If the supply is confirmed during the second quarter of this year, it will be reflected in the financial results."

The company is expected to post record-high quarterly sales in the first quarter of this year. Revenue is projected at 8.01 billion won, up 48% from a year earlier, and operating profit at 860 million won. Both figures are expected to surpass the market consensus of 6.56 billion won in revenue and 720 million won in operating profit. The researcher explained, "This is because challenger material performance is being revised upward thanks to strong downstream demand," adding, "Sales of silicon anode materials, which have completed inventory adjustments, are also expected to recover both year-on-year and quarter-on-quarter."

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