[Click eStock] "Daeduck Electronics, Expected to Win AI Substrate Orders"

NH Investment & Securities analyzed on the 10th that Daeduck Electronics is expected to improve its performance due to an improvement in the industry conditions, and it is also likely to secure orders for AI substrates. The investment opinion 'Buy' and the target price of 31,000 KRW were maintained.

NH Investment & Securities forecasted that Daeduck Electronics' operating profit in the second quarter will reach 8.4 billion KRW, a 49.7% increase compared to the same period last year. They stated, "In the second half of the year, the profit growth is expected to continue as the improvement in the non-memory sector benefits the industry alongside memory. Recently, the market's expectations for substrate industry improvement are low due to weak demand in servers and PCs, but for Ibiden, the global No.1 FCBGA company, the stock price rose 20% over two months mentioning a recovery in server demand, indicating that concerns about the industry are excessive."

They added, "It is also important to note that the company is actively making efforts to secure MLB substrates for AI accelerators. Until now, limited production capacity has prevented large order volumes, but recent discussions with some customers have progressed significantly, and there is potential for volume expansion and additional capacity increases in the second half of the year and in 2025."