[Click eStock] "Daeduck Electronics Ready to Stretch Its Third Quarter Earnings"

[Asia Economy Reporter Park Jihwan] DB Financial Investment evaluated on the 20th that Daeduck Electronics is ready to fully stretch its performance starting from the third quarter of this year.

Kwon Seongryul, a researcher at DB Financial Investment, stated, "Daeduck Electronics' second-quarter sales were 217.3 billion KRW, and operating profit was 10.1 billion KRW, representing decreases of 21.7% and 57.4% respectively compared to the previous year."

Although the core semiconductor package performed well, the main factors were the deterioration of FPC performance due to the smartphone market slump and a decrease in MLB sales.

Both sales and operating profit are expected to improve in the third quarter. First, the semiconductor package is anticipated to see an increase in average selling price (ASP) and improved profitability as the proportion for DDR5 and GDDR6 significantly rises.

However, while FPC sales are expected to increase due to a recovery in operating rate from increased flagship orders from key customers, profitability improvement is considered difficult due to price reduction pressure and intensified competition.

Researcher Kwon Seongryul said, "Despite the adverse effects of COVID-19, operating profit is expected to increase this year due to the withdrawal from the loss-making HDI business at the beginning of the year, efforts to improve the product mix of MLB, and the favorable performance of semiconductor packages," adding, "Next year, sales exceeding 1 trillion KRW and operating profit around 90 billion KRW are expected, which is undervalued compared to the market capitalization."