[Click eStock] "Strong Earnings at Daeduck Electronics, Operating Profit to Double This Year... Target Price Up"

[Asia Economy Reporter Lee Myunghwan] DB Financial Investment announced on the 19th that it expects a sharp increase in operating profit for Daeduck Electronics this year and has raised the target price from the previous 35,000 KRW to 39,000 KRW. The investment rating was also maintained as a buy.

DB Financial Investment stated that it is revising Daeduck Electronics' standalone operating profit upward from 31.2 billion KRW to 38.1 billion KRW. This represents a 41.1% increase compared to the previous quarter and a 452.2% surge compared to the same period last year. The company explained that the semiconductor package substrate performance exceeded expectations amid a favorable USD-KRW exchange rate environment. FC-BGA (Flip Chip Ball Grid Array) sales are estimated to have increased rapidly from 16.8 billion KRW in Q4 last year to over 30 billion KRW in Q1 this year. The analysis also noted that price increases for some memory substrates and growth in FC-BOC sales contributed to profitability.

DB Financial Investment predicts that Daeduck Electronics' operating profit will approximately double this year compared to last year. The standalone operating profit, which was 74.4 billion KRW last year, is expected to rise significantly to 159.5 billion KRW this year. The strong performance of both memory and non-memory substrates is driving overall results, with FC-BGA sales increasing from 19.3 billion KRW last year to over 160 billion KRW this year, offsetting depreciation expenses. MLB product mix is improving mainly for network equipment, and FC-BOC sales, a module SiP (System in Package), are expected to reach an annual scale of 150 billion KRW.

Kwon Seongryul, a researcher at DB Financial Investment, analyzed, "We are raising the annual operating profit forecast by 12% this year and accordingly increasing the target price to 39,000 KRW. Factors supporting the performance, such as timely investment, prior restructuring, and an increase in the proportion of non-memory substrates, are becoming clearer."