DAISHIN SECURITIES projected on the 24th that Daeduck Electronics will see its valuation rise due to performance recovery and securing new transactions. DAISHIN SECURITIES maintained a 'buy' investment opinion on Daeduck Electronics and raised the target price from 20,000 won to 23,000 won. The closing price of Daeduck Electronics the previous day was 16,540 won.
Daeduck Electronics' stock price rose 13% from the 1st to the 20th of this month. During the same period, ▲Simmtech rose 37%, ▲TLB rose 29%, ▲Haesung DS rose 41%, and ▲ISU PETASYS rose 21%, falling short of other printed circuit board (PCB) manufacturers' stock price increases.
Park Kang-ho, a researcher at DAISHIN SECURITIES, predicted that Daeduck Electronics' stock price increase could outpace other PCB manufacturers in the future, as performance improvements are expected. Park estimated that Daeduck Electronics would turn from an operating loss of 6.2 billion won in the first quarter (January-March) to an operating profit of 6.5 billion won in the second quarter (April-June). Starting from the third quarter, the operating profit is expected to increase, with annual operating profit projected to grow from 11.3 billion won last year to 23.2 billion won this year and reach 86.7 billion won by 2026.
The basis for Park's optimism regarding Daeduck Electronics' performance is twofold. First, revenue from multilayer boards (MLBs) for artificial intelligence (AI) accelerators is expected to begin in the second quarter. In the third quarter, as a client company launches a new product, there is a significant possibility that sales will increase further.
Additionally, new revenue related to autonomous driving chip FC-BGA is expected to arise from the fourth quarter. FC-BGA is a type of high-performance semiconductor packaging substrate. Park evaluated that the demand for FC-BGA will improve the utilization rate and increase the proportion of high-value products in the automotive sales, which will also boost Daeduck Electronics' operating profit.
Furthermore, Park noted that if Nvidia releases products applying GDDR7 for AI semiconductors for the Chinese market in the second half of the year, Daeduck Electronics' related revenue could also increase. He stated, "As shipments of general-purpose memory semiconductors increase, an increase in revenue related to GDDR7 and DDR5 for servers will contribute to improved profitability."