[Click eStock] "Breaking Previous Highs Will Be Easier... DKTI, Target Price 19,000"

Shinhan Investment Corp. on the 16th issued a new buy rating and a target price of 19,000 KRW for DKTI, stating that "there is a high possibility of surpassing the previous peak market capitalization reached solely on expectations related to foldable technology." The target price was calculated by applying a price-to-earnings ratio (PER) of 11 times to the average earnings per share (EPS) for 2024?2025. The closing price on the previous day was 11,940 KRW.

On the same day, researcher Choi Seunghwan of Shinhan Investment Corp. said, "This year marks the first year of growth as the front-end of the Surface Mount Technology (SMT) business diversifies into information technology (IT), automotive electronics, and energy storage systems (ESS)," adding, "The proportion of non-smartphone sales is expected to expand from 15% this year to 36% in 2026." He also stated, "The expansion of sales in North American customers' IT organic light-emitting diode (OLED) and ESS will be an opportunity for valuation (stock price relative to corporate value) reassessment."

He forecasted, "As Samsung Electronics' flagship smartphones such as On-Device and foldable models become high-spec, smartphone flexible printed circuit assembly (FPCA) sales will recover with a 31% growth compared to last year," and "With the expansion into North American IT OLED (tablet, notebook), core business growth will continue in 2025 and 2026."

Expansion of new business proportions also draws attention. Researcher Choi said, "The sales of BH EVS, a wireless charging subsidiary for vehicles (BH holds 59% stake, DKTI 41%), are estimated at 400 billion KRW this year with an operating profit margin of 7.1%. Mid- to long-term growth is expected due to the expansion of wireless charging adoption and higher specifications," adding, "The full-scale launch of the battery management system (BMS) business is also noteworthy. Sales of BMS modules for ESS and vehicle main and auxiliary batteries will begin in earnest from the second half of this year. ESS products are supplied to all major domestic battery companies, and plans are in place to respond through local expansion in North America."