[Featured Stock] DKTI, Expected to Benefit from On-Device AI This Year

DKT is on the rise. It is interpreted that the analysis by securities firms expecting benefits from on-device artificial intelligence (AI) has had an impact.

As of 10:28 AM on the 5th, DKT was trading at 7,860 won, up 270 won (3.56%) from the previous trading day.

DKT's main products are smartphone and automotive module FPCAs (Flexible Printed Circuit Assembly). The FPCA for smartphones used in organic light-emitting diode (OLED) panels accounts for more than 50% of sales.

Oh Hyunjin, a researcher at Kiwoom Securities, explained, "It is understood that the demand for smartphones equipped with AI functions has been rapidly increasing recently. The Galaxy S25 model, upgraded with AI functions by mounting the Snapdragon 8 Elite, is expected to achieve record-breaking sales, having recorded 1.3 million units in domestic pre-sales."

He added, "Smartphones equipped with AI technology require an increase in mounted components and higher mounting difficulty, so an ASP increase effect for DKT's FPCA products is also expected. The company has developed S-PCM, a protection circuit module that complements PCM to prevent battery overvoltage and overcurrent. On-device AI products require advanced battery technology for power efficiency, which could also be beneficial."

Kiwoom Securities forecasted that DKT's sales and operating profit this year will increase by 23% and 33% year-on-year to 494.9 billion won and 30.7 billion won, respectively. He emphasized, "In addition to smartphones, the company is expanding its product lineup toward IT OLED and expects sales to occur in the second half of this year. DKT is currently supplying ESS BMS modules to domestic battery cell customers." He added, "Currently, the stock price is judged to be in a significantly undervalued phase."