[Click eStock] "Daeduck Electronics Proves Semiconductor Boom... FC BGA Performance to Fully Launch This Year"

[Asia Economy Reporter Ji Yeon-jin] Daishin Securities announced on the 24th that it raised the target stock price of Daeduck Electronics by 10% to 33,000 KRW after the company's fourth-quarter earnings last year exceeded expectations, leading to an upward revision of this year's earnings per share (EPS).

Daeduck Electronics reported fourth-quarter sales of 281 billion KRW, a 26% increase compared to the same period last year, and an operating profit of 26.2 billion KRW, turning profitable and significantly surpassing the previous market forecast of 24.8 billion KRW. With sales and profits increasing for two consecutive quarters, this demonstrated the boom in the semiconductor printed circuit board (PCB) sector.

Park Kang-ho, a researcher at Daishin Securities, stated, "(In the fourth quarter of last year) the flexible PCB and telecommunications equipment sectors continuously exceeded the break-even point by pursuing cost reduction and mix improvement," adding, "Sales of the new business 'FC BGA' have started, and it is expected to contribute significantly to overall sales and operating profit growth with 157.4 billion KRW in sales this year."

FC-BGA is a highly integrated package substrate that connects semiconductor chips and main substrates using Flip Chip Bumps, considered the most difficult product to manufacture among semiconductor package substrates. Daeduck Electronics has invested 270 billion KRW in FC BGA since 2020, and the effects are expected to materialize fully this year and next.

FC BGA sales are estimated at 157.4 billion KRW this year and 359.4 billion KRW in 2023, with the sales proportion expected to increase to 12.3% this year and 24% in 2023. Researcher Park said, "FC BGA products are currently expected to have the highest profit margins, and high growth is anticipated amid the expansion of automotive electronics, autonomous driving, and electric vehicle markets," adding, "Daeduck Electronics is expected to contribute to performance improvement through stable market entry by collaborating with global semiconductor customers as an initial response to business progress."

Daeduck Electronics' operating profit for this year is projected to be 33.9 billion KRW in the first quarter, a 405% increase compared to the same period last year, and the annual operating profit is also expected to surge 101% to 144.2 billion KRW.