[Click eStock] "Daeduck Electronics, 2026 Earnings Expectations Raised... Target Price Up"

On December 19, Daishin Securities analyzed that Daeduck Electronics is expected to enter a phase of simultaneous re-evaluation of both its performance and valuation starting in 2026. Accordingly, the target stock price was raised by 21.3% from the previous estimate to 57,000 won.

Park Kangho, a researcher at Daishin Securities, stated, "We applied a target price-to-earnings ratio (P/E) of 26.8 times to the 2026 earnings per share (EPS), reflecting the upper band of the performance expansion phase." He emphasized, "Given the increase in AI-related MLB sales, the turnaround in the FC-BGA business, and the mix effect from the memory boom including GDDR7, a continuous re-evaluation of the company's valuation is expected to be reflected."

Daeduck Electronics' fourth-quarter results for this year are also expected to meet market expectations. Operating profit for the fourth quarter is estimated at 25.1 billion won, turning to profit from the same period last year and increasing by 2.5% compared to the previous quarter. Park noted, "When factoring in one-off costs such as performance bonuses, this represents a genuine improvement over the third quarter's operating profit of 24.5 billion won," and added, "Sales are expected to reach 295.5 billion won, up 43.1% year-on-year." Accordingly, Daishin Securities raised its 2025 and 2026 EPS forecasts by 1.3% and 9.3%, respectively.

The outlook for 2026 is even more aggressive. Daishin Securities expects Daeduck Electronics' 2026 sales to reach 1.23 trillion won and operating profit to hit 126.1 billion won, representing increases of 17.3% and 179.1% year-on-year, respectively. Park commented, "This will be a period where the improvement in profitability far exceeds the growth in sales," and pointed out, "It is important to pay attention to the potential for further upward revisions in profit beyond the 2022 operating profit of 232.5 billion won."

The core driver of this performance improvement is the FC-BGA business. Park explained, "FC-BGA is expected to turn profitable in the first quarter of 2026 and will enter a full-scale expansion phase from the second quarter onward." With the acceleration of automotive electrification and the expansion of customer base, FC-BGA sales are projected to increase from 178.1 billion won in 2024 to 212.3 billion won in 2025, and further to 316.3 billion won in 2026. He stated, "As utilization rates rise and depreciation expenses decrease simultaneously, the increase in sales will directly translate into improved profitability." In particular, he added, "Supply of FC-BGA for autonomous driving semiconductors to North American electric vehicle makers will begin in the fourth quarter of 2025, and the mix effect will become fully realized in 2026."

The memory package business is also expected to show stable growth. Park noted, "Among package manufacturers, Daeduck Electronics has the highest proportion of server-related and DDR5 sales," and added, "In 2026, sales of server-related GDDR7 and LPDDR5 for SOCAM2 are expected to increase." As global investment in AI servers and data centers expands, memory package sales are projected to reach 547.4 billion won in 2025, up 14.9% year-on-year, and to grow by 19.3% in 2026. This growth rate outpaces that of the non-memory segment.

Park concluded, "In 2026, growth in the memory segment will surpass that of non-memory, resulting in a larger increase in operating profit compared to competitors," and analyzed, "Given the performance exceeding consensus and a differentiated business structure, the re-evaluation of Daeduck Electronics' valuation is still ongoing."