[Featured Stock] Doosan Surpasses 300,000 Won Intraday... Sets New 52-Week High Again

Doosan surpassed 300,000 KRW during trading on the 7th, driven by favorable reviews from the securities industry, setting a new 52-week high once again.

As of 9:14 AM that day, Doosan was trading at 294,500 KRW on the KOSPI market, unchanged (0%) from the previous close.

The stock opened at 299,000 KRW and reached an intraday high of 304,500 KRW, marking a new 52-week high. This follows the previous day's trend of reaching higher peaks.

The upward trend in the stock price is attributed to reports released consecutively the previous day from the securities industry, which highlighted Doosan's improved business competitiveness and anticipated benefits from governance improvements such as the expansion of directors' fiduciary duties.

iM Securities raised its target price from 265,000 KRW to 350,000 KRW, stating that holding companies like Doosan would be the biggest beneficiaries if directors' shareholder fiduciary duties are introduced.

Researcher Lee Sang-heon of iM Securities explained, "The introduction of directors' shareholder fiduciary duties would shift the agency cost structure from controlling shareholders versus minority shareholders," adding, "This could soon provide an opportunity for outside directors to escape the controversy of being mere rubber stamps."

He further pointed out, "In the case of holding companies like Doosan, due to dual listings of the holding company and its subsidiaries, liquidity discounts are inevitable, which inherently increases the likelihood of conflicts of interest between controlling and minority shareholders."

BNK Investment & Securities also raised its target price for Doosan to 350,000 KRW on the same day, up 40% from the previous 250,000 KRW.

Researcher Kim Jang-won of BNK Investment & Securities noted, "In 2017, sales increased by 16% year-over-year and operating profit rose by 64.8%, driven by an increase in high value-added products centered on FCCL and OLED, global diversification of sales channels including Apple and Greater China, and expansion of new applications." He added, "At that time, the share of high value-added products increased by 2 percentage points, and the sales proportion of non-Samsung customers including Apple and Greater China rose by 7 percentage points."

He also mentioned, "Although it may be difficult to revisit the topic of affiliate spin-offs and mergers, Doosan Robotics' expansion in the collaborative robot business presents potential for increased equity value and utilization, which should be considered in Doosan's valuation."