[Click eStock] "Daeduck Electronics, Expected Record High Sales of 1.1 Trillion Won This Year"

Expansion of High-Value Substrate Sales Share... Semiconductor Package Performance Also Improves

[Asia Economy Reporter Minwoo Lee] Daeduck Electronics is expected to record its highest-ever sales this year by surpassing 1 trillion KRW in revenue. This outlook is based on an increase in the proportion of high value-added substrate sales and improved performance in the semiconductor package segment.

On the 21st, Kiwoom Securities newly issued a 'Buy' investment opinion and a target price of 30,000 KRW for Daeduck Electronics, citing these factors. The closing price on the previous day was 22,900 KRW.

The expected sales for this year are 1.1353 trillion KRW, with an operating profit of 110.5 billion KRW. These figures represent increases of 15.6% and 60.6%, respectively, compared to last year's estimates. This points to a record-high performance. Ji-san Kim, a researcher at Kiwoom Securities, explained, "The proportion of high value-added substrates such as FC-BGA has increased, and the full-scale mass production of FC-BOC for DDR5 has driven growth in the semiconductor package substrate segment." He added, "The system-in-package (SiP) and multi-layer flexible printed circuit board (MLB) segments, which have long hindered performance, will be reorganized with a focus on profitability."

Specifically, sales in the semiconductor package substrate segment this year are estimated at 825.2 billion KRW, a 26% increase from last year's forecast. Researcher Kim stated, "Until last year, FC-CSP and FC-BOC were the main products, but since the end of last year, the FC-BGA business has started, and its profit contribution will become significant this year." He analyzed, "Daeduck Electronics has invested 400 billion KRW in FC-BGA through this year to enhance business competitiveness and is differentiating itself from leading companies by focusing on automotive applications such as advanced driver-assistance systems (ADAS) data processing processors." Additionally, with the full-scale mass production of DDR5, FC-BOC is expected to gain new growth opportunities.

The long-underperforming module SiP segment is expected to generate sales of 167.5 billion KRW this year, about 10% lower than last year's estimate. While reducing camera module substrates, the company is expanding substrates for 5G AiP and DRAM, which is expected to improve business structure and profitability.

The MLB segment is projected to achieve sales of 142.6 billion KRW this year, about 5% higher than last year. The company plans to reduce low-profit automotive products and increase supply for wired network equipment.