[Market Focus] Haesung DS Surges Over 8% on Expectations of Profitability Recovery from Q2

Haesung DS, a KOSPI-listed company, is showing strong performance on June 26. Investor sentiment appears to have recovered on expectations that profitability will rebound from the second quarter, driven by an increase in European automobile sales.

As of 2:13 p.m. on this day, Haesung DS shares are trading at 29,700 won, up 8.59% from the previous trading day. The stock started trading at 28,750 won and has maintained its upward trend throughout the session.

On this day, DS Investment & Securities raised its operating profit estimate for Haesung DS and increased its target price by 47.8%, from 23,000 won to 34,000 won, stating, "As European automobile sales increase, orders have been gradually recovering since April."

Lee Surim, a researcher at DS Investment & Securities, explained, "With the end of DDR4 production now virtually certain, customers are actively moving to secure DDR4 inventory. As a result, memory manufacturers are increasing DDR4 shipments in the short term, both to meet pre-order demand and to finalize production before the end of manufacturing."

With the recovery in DDR4 package substrate sales, second-quarter operating profit is expected to reach 9.4 billion won (an operating margin of 6%), up 2,184% from the previous quarter.