[Click eStock] "Doosan, Electronic BG Business to Grow Significantly This Year... Target Price Up"

Daishin Securities raised the target price for Doosan to 190,000 KRW on the 4th, citing a significant improvement expected in the performance of the Electronics BG business division this year. The investment rating was maintained as 'Buy.'

Researchers Yang Ji-hwan and Lee Ji-ni stated, "Doosan's Electronics BG business division primarily focuses on CCL and FCCL, with sales of network board and semiconductor CCL expected to grow significantly in 2024-2025. In 2023, sales of network board CCL accounted for about 6-7% of total CCL sales, recording approximately 10 billion KRW in revenue."

The two researchers added, "In 2024-2025, sales to companies N and A are expected to increase, conservatively estimated at about 30 billion KRW and optimistically around 50 billion KRW," and "the proportion of CCL sales is expected to rise to about 20-30%."

They continued, "The market size is projected to grow to approximately 500 billion KRW by 2025, and assuming a 20% market share, sales could expand to around 100 billion KRW," adding, "The operating profit margin (OPM) of this product is estimated to exceed the 20% OPM of high-end CCL."

Meanwhile, consolidated operating profit for the first quarter is expected to decline compared to the previous year due to a decrease in operating profit at subsidiary Doosan Enerbility. However, on a standalone basis, sales are projected to increase by 16.7% year-on-year to 297.7 billion KRW, and operating profit is expected to rise by 29.4% to 20.8 billion KRW.