[Click eStock] "Doosan Tesna, Annual Earnings Outlook Lowered"

On May 27, Korea Investment & Securities significantly lowered its annual earnings outlook for Doosan Tesna. The company did not provide an investment opinion or a target price.

Doosan Tesna is engaged in wafer testing and packaging testing, which are part of the back-end process of system semiconductors, as well as the Die Preparation (DP) business, which involves rearranging and sorting tested wafers.

Korea Investment & Securities revised its annual estimates for Doosan Tesna downward, reflecting a decline in wafer test utilization rates and weak customer demand. The new projections are sales of KRW 293.2 billion (a 21% decrease year-on-year) and operating profit of KRW 2.8 billion (a 94% decrease year-on-year), representing downward adjustments of 11% and 89%, respectively, compared to previous estimates.

Doosan Tesna recorded an operating loss of KRW 19.1 billion in the first quarter. However, Korea Investment & Securities forecast that the company will return to profitability in the second quarter, supported by rising utilization rates in the System on Chip (SoC) segment. Utilization rates, which had fallen below 30%, rose to 45% in April and reached 50% in May. Analyst Cho Sooheon commented, "The recovery in utilization rates is certainly positive, but confirmation of improved demand for mobile-oriented product lines such as CIS and AP is essential for a sustained upward trend in the share price." He added, "However, due to the impact of U.S. tariffs, there is still significant uncertainty regarding demand improvement in the second half of the year."