[Click eStock] "Daeduck Electronics, Lowered Earnings Expectations... Target Price Down"

Hana Securities judged on the 8th that the performance expectations for Daeduck Electronics have lowered compared to the initial outlook. The investment opinion remains 'Buy,' but the target price was lowered from 34,000 KRW to 30,000 KRW.

Daeduck Electronics recorded sales of 234.4 billion KRW and an operating profit of 6.4 billion KRW in the fourth quarter of last year. These figures represent decreases of 21% and 87%, respectively, compared to the same period last year, falling short of market expectations. Kim Rok-ho, a researcher at Hana Securities, analyzed, "Sales of DDR5, which has relatively good profitability, decreased compared to the previous quarter, limiting mix improvement," and added, "The non-memory and multi-layer circuit board (MLB) sectors also continued to perform poorly."

Researcher Kim forecasted that profit margins will improve from the second half of this year. He explained, "In the memory sector, sales are expected to increase centered on DDR5," and "From the second quarter of this year, supply of flip-chip ball grid array (FCBGA) to new customers is anticipated."

He added, "FCBGA is expected to provide momentum from new customers and normalization of performance," and "It will be a product that can demonstrate competitiveness from a technical perspective."

Daeduck Electronics is estimated to achieve sales of 1.09 trillion KRW and an operating profit of 95.4 billion KRW this year. These are expected to increase by 21% and 302%, respectively, compared to last year.