[Click eStock] "Doosan, Electronic BG Performance Exceeds Expectations"

Daishin Securities maintained a buy rating and a target price of 420,000 KRW on Doosan on the 28th, stating that "despite the recent stock price adjustment, the performance of the Electronics BG division is expected to significantly exceed expectations."

On the same day, Yang Ji-hwan, a researcher at Daishin Securities, said, "It has been identified that sales of CCL (Copper Clad Laminate) to Company N are increasing significantly more than expected." Due to the conservative performance guidance provided by the Electronics BG division, and the stock price adjustment of Nvidia, along with recent news of Microsoft (MS) reducing capital expenditures (CAPEX), the stock price has been declining by more than 20% from the peak on the 26th of last month.

In the fourth quarter of last year, Doosan's Electronics BG division recorded sales of 335.9 billion KRW, the highest quarterly figure to date. Researcher Yang emphasized, "During this period, CCL sales to Company N exceeded 100 billion KRW. This volume corresponds to the two months of November and December last year when Nvidia sales were recognized, significantly surpassing the initially expected monthly average of 30 billion KRW," adding, "Similar sales levels were recorded in January and February this year, indicating that market concerns are excessive."

Researcher Yang recommended, "We are raising the sales estimate for Doosan's Electronics BG division this year from 1.184 trillion KRW to 1.282 trillion KRW, a 9% increase, and suggest using the stock price adjustment as a buying opportunity." He also noted, "While we initially expected CCL sales to Nvidia to be around 350 billion KRW this year, it is highly likely to exceed 500 billion KRW."

Doosan is also jointly developing products for Nvidia's next-generation chip (Rubin). Researcher Yang stated, "If exclusive supply begins, it will be reflected in the performance from the fourth quarter of this year and next year." He added, "With recent signs of improvement in the memory semiconductor market, semiconductor CCL sales are expected to recover from the second quarter, leading to significant improvements in the scale and profitability of the Electronics BG division by 2025."