[Click e-Stock] "Haesung DS Expected to Rebound After Q1 Earnings Low... Target Price Raised"

Target Price Raised from 30,000 Won to 32,000 Won

On June 17, Shinhan Investment & Securities raised its target price for Haesung DS from 30,000 won to 32,000 won, anticipating a rebound in performance after the first-quarter low this year. The investment opinion was maintained as 'Buy'.

Kangho Oh, a researcher at Shinhan Investment & Securities, stated, "We estimate that the timing for a rebound will follow the weak performance in the first quarter." He added, "Although we have revised our 2026 earnings per share (EPS) estimate down by 34% compared to our previous forecast, we have raised the valuation. Given the characteristics of the industry, we believe this is a phase where the stock price can sufficiently move ahead of earnings, so we are maintaining our upward outlook for the stock price and have raised the target price."

The outlook for this year is for a 'low first half, high second half' pattern and a stepwise growth trend. Oh analyzed, "Operating profit is expected to increase from 400 million won in the first quarter to 10.1 billion won in the second quarter. From the second quarter, demand from major clients is expected to rebound, and the momentum for growth is sufficient with the expansion of new clients." He continued, "The key factors are improved profitability through product upgrades in the semiconductor segment and expectations for improved demand from major lead frame customers. In 2026, the company is expected to enter a phase of accelerated growth." Shinhan Investment & Securities forecasts Haesung DS's operating profit in 2026 to reach 63.2 billion won, up 48% from the previous year.

However, performance volatility due to forecast demand remains a risk factor. Oh pointed out, "As a risk factor, it is necessary to monitor the increased performance volatility depending on end-market demand. If IT demand improves, accelerated earnings growth is also possible. The company's mid- to long-term growth drivers remain intact thanks to client diversification, product diversification, and portfolio expansion."