[Click eStock] "Daeduck Electronics, Strong Performance in Q4... Even Better Next Year"

[Asia Economy Reporter Park Jihwan] Daishin Securities announced on the 23rd that Daeduck Electronics' strong performance is expected to continue next year. The investment opinion 'Buy' was maintained, and the target price was raised by 11% to 30,000 KRW.

Park Kangho, a researcher at Daishin Securities, stated, "The Q4 performance this year is judged to be on track, meeting previous estimates," and "Operating profit is expected to turn positive to 24.8 billion KRW compared to the previous year." Sales are forecasted to increase by 18.8% year-on-year to 264.9 billion KRW. Operating profit for two consecutive quarters is expected to remain above 20 billion KRW, with the mobile and MLB divisions' performance slowdown being offset by increased semiconductor PCB sales, driving overall growth.

Among Q4 results, semiconductor PCB sales are expected to continue high growth, increasing by 8% quarter-on-quarter and 42% year-on-year to 186.7 billion KRW. Researcher Park Kangho said, "With the extension of the untact effect, package (semiconductor PCB) sales increased continuously due to PC and server demand and Samsung Electronics' smartphone sales growth for mobile," adding, "As a trickle-down effect, mix effects and overall supply shortage and supply price stabilization are being maintained."

Next year, overall sales are expected to increase by 25.5% to 1.24 trillion KRW, and operating profit by 63% to 114.9 billion KRW, driven by expanded FC BGA sales and high growth of semiconductor PCB.

Proactive investment decisions were also positively evaluated. Since July last year, Daeduck Electronics has invested 270 billion KRW in the FC BGA sector in three phases. Researcher Park Kangho said, "Initially responding to the growth of non-memory semiconductors for automotive use, the portfolio is expected to gradually diversify into the server sector," emphasizing, "Among semiconductor PCBs (packages), which require advanced technology (miniaturization and stacking), Daeduck Electronics is judged to be the only company in Korea operating and investing in the FC BGA business after Samsung Electro-Mechanics."