[Click e-Stock] "Daeduck Electronics Forecasts Surprise Q3 Earnings... Target Price Raised to 40,000 Won"

On October 27, Daishin Securities analyzed that profitability at Daeduck Electronics is improving at a faster pace than expected in the second half of the year, forecasting a surprise earnings result. Accordingly, the firm maintained its "BUY" investment rating and raised its target price by 54% to 40,000 won.

Park Kangho, a researcher at Daishin Securities, stated, "Operating profit for the third quarter of this year is expected to reach 23.4 billion won, up 154% year-on-year and 1,154% quarter-on-quarter, exceeding the previous estimate (12.4 billion won) by 88.7% and the consensus (14.6 billion won) by 60.3%." He added, "Fourth-quarter operating profit is also projected to reach 23.8 billion won, surpassing market expectations."

Daishin Securities identified Daeduck Electronics' improving profitability and expansion into new businesses as key investment points. Park explained, "Profitability is improving faster than anticipated, allowing for upward valuation revisions. Total sales are expected to reach 1.0399 trillion won this year, up 16.6% from the previous year, and 1.2051 trillion won in 2026, a 15.9% increase. Operating profit is projected to grow by 281% and 158%, respectively."

He particularly emphasized, "While sales of server memory packages remain high, new AI-oriented MLB sales have been reflected since the second quarter, and in the fourth quarter, the company will supply FC BGA for Tesla's autonomous driving semiconductors, leading to improved utilization rates and product mix. The utilization rate for the FC BGA division is expected to rise rapidly in the fourth quarter, likely surpassing the break-even point in the first quarter of 2026."

He further added, "With Samsung Electronics winning orders for Tesla's autonomous driving AI5 and AI6 semiconductors, Daeduck Electronics can also expect additional sales. As automotive electronics expand, orders from existing clients are increasing, which will further boost utilization rates and reduce fixed costs."

Park projected, "In 2026, sales of AI-oriented MLB and Tesla-oriented FC BGA will expand in earnest, further improving profitability. Having a portfolio focused on high-growth areas such as AI, Tesla, and autonomous driving within the PCB industry will serve as a factor for upward valuation revision."