'Record High March' Doosan, Both Its Own Business and Subsidiaries Grow Rapidly

Up 47.5% This Year
Electronics Materials Division Improves Profitability Through Mass Production of High Value-Added Materials
Rising Corporate Value of Doosan Enerbility and Doosan Robotics

Doosan's stock price has reached an all-time high. Its market capitalization surpassed 6.2 trillion KRW. This is the result of improved performance expectations for the Electronics BG (Business Group) and the continued rise in the value of subsidiary shareholdings.

According to the financial investment industry on the 24th, Doosan's stock price has risen 47.5% since the beginning of this year. Considering that the KOSPI rose 10.6% during the same period, the market-relative return is as high as 36.9 percentage points.

Doosan is the holding company of the Doosan Group, which consists of Doosan Enerbility, Doosan Bobcat, Doosan Fuel Cell, and Doosan Robotics. It also operates its own businesses such as Electronics BG and Digital Innovation BU. Electronics BG produces copper-clad laminates (CCL), a key material for printed circuit boards (PCB). CCL is a core material required for advanced electronic devices such as semiconductors, smartphones, and communication equipment. Major products of Electronics BG include semiconductor package CCL, network board CCL for communication equipment, and flexible copper-clad laminate film (FCCL) for smartphones, among others. Digital Innovation BU provides technology and infrastructure for digital transformation (DT) and trains specialized personnel.

In the fourth quarter of last year, Doosan recorded sales of 5.1999 trillion KRW and an operating profit of 209 billion KRW. While sales decreased by 1% compared to the same period last year, operating profit increased by 22%. Dongyang Kim, a researcher at NH Investment & Securities, explained, "Operating profit from own businesses was 44.2 billion KRW, a 580% increase compared to the same period last year," adding, "Profitability improved as high value-added products such as AI accelerators and optical modules began mass production in earnest." He further added, "If the new sales are fully reflected, sales in the electronics sector are expected to increase by 32% this year."

The optimistic outlook for own businesses is due to continuous technology development since 2023, when the upstream industry was sluggish. Jangwon Kim, a researcher at BNK Investment & Securities, analyzed, "Doosan has secured business competitiveness through new mass production of DDR5, the start of GDDR7 development, and entry into new AI accelerator applications," adding, "New materials including AI accelerators have good profitability."

He continued, "Electronics BG achieved its highest sales and operating profit by mass-producing high-end materials such as AI accelerators and optical modules," and expressed expectations that "it will benefit from steady demand for semiconductor materials and increased data center investments due to the expansion of the AI industry."

Doosan holds shares in listed subsidiaries including 30.4% of Doosan Enerbility, 60.9% of Oricom, and 68.2% of Doosan Robotics. The value of these holdings exceeds 9 trillion KRW. Since the beginning of this year, the stock prices of Doosan Enerbility and Doosan Robotics have risen 65.0% and 37.7%, respectively. Their market capitalizations have grown to 18.54 trillion KRW and 4.67 trillion KRW. The increase in the value of subsidiary shareholdings has positively influenced Doosan's stock price as well.