[Click eStock] "Doosan, Electronic BG Business Value 1.5 Trillion → 2.5 Trillion... Target Price Up 32%"

DS Investment & Securities has revised the business value of Doosan's Electronics Business Group (BG) upward from 1.5 trillion KRW to 2.5 trillion KRW. The target stock price was also raised from 190,000 KRW to 250,000 KRW.

In the bidding competition for the new Dukovany nuclear power plant in the Czech Republic, "Team Korea," led by Korea Hydro & Nuclear Power and consisting of Doosan Enerbility, Daewoo Engineering & Construction, and Korea Electric Power Technology, was selected as the preferred negotiator, defeating the French Electric Utility Company (EDF). The photo was taken on the 18th at Doosan Tower, Jung-gu, Seoul. Photo by Jinhyung Kang aymsdream@

Kim Suhyun, a researcher at DS Investment & Securities, stated, "Doosan has become the sole supplier of copper-clad laminates (CCL), a key component, for NVIDIA's AI semiconductor 'B' model in the U.S., and it is highly likely to be selected as the sole supplier for the next-generation AI chip 'Rubin,' surpassing Taiwanese companies."

Researcher Kim predicted, "The supply volume for NVIDIA's B model will be reflected in the results starting from the fourth quarter of this year, and sales related to Rubin will be partially reflected from the second half of next year." He especially noted, "Since the profit margin for the new model chip supply is high, if NVIDIA's sales proportion increases, Doosan Electronics BG's operating profit margin will exceed 15%."

He analyzed, "Doosan Electronics BG is expected to record sales of 247 billion KRW in the third quarter, an 11.6% increase compared to the same period last year," adding, "Sales related to high-end products such as AI accelerators and next-generation high-speed memory (GDDR7 DRAM) will be significantly reflected in the fourth quarter results, pushing quarterly sales to exceed at least 255 billion KRW."

He continued, "To respond to the government's value-up policy, there is a high possibility of an immediate cancellation of 18% of treasury shares," and added, "Following the restructuring of the governance structure, more active shareholder returns will be possible through cash dividends received from Bobcat."