[Click eStock] DI's Earnings Set to Surge This Year... Target Price at 44,000 Won

Hyundai Motor Securities Initiates Coverage on DI

On May 14, Hyundai Motor Securities initiated its coverage of DI with a "Buy" investment opinion and a target price of 44,000 won, stating that the company's performance is expected to surge significantly this year.

Dongwook Yoon, an analyst at Hyundai Motor Securities, estimated, "DI is expected to achieve remarkable top-line growth and improved profitability this year, with sales reaching 582.3 billion won (up 35.9% year-on-year) and operating profit at 98.7 billion won (up 170.3% year-on-year)."

Analyst Yoon noted, "Its subsidiary, Digital Frontier, secured orders for HBM4 burn-in testers for SK hynix through two disclosures in the first quarter," adding, "Deliveries started in March, so part of the sales were recognized in the first quarter, and revenue will be fully reflected from the second quarter onward."

He further stated, "Given the high likelihood of additional orders of a similar scale within the year, the company could supply approximately 180 units of HBM4 burn-in testers on an annual basis," expecting, "Based on this, Digital Frontier can achieve sales growth of more than 70 billion won year-on-year."

He especially projected, "The HBM4 burn-in tester is estimated to have significantly improved profitability compared to the previous HBM3E model," predicting, "Accordingly, the consolidated operating margin will rise from 8.4% in 2025 to 16.8% in 2026."

Yoon also pointed out, "DI's headquarters is also seeing a sharp increase in the supply of memory package testers, supported by expanded investment from major customers," adding, "The total number of equipment supplied by DI and Digital Frontier combined is expected to rise from 282 units in 2025 to just above 400 units in 2026." He further emphasized, "As shipments of equipment expand, the supply of boards installed in the company's equipment will also increase, contributing to earnings growth."

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