On July 6, iM Securities announced it has raised its target price for Doosan from 1.2 million won to 2 million won, reflecting improved performance due to increased demand for artificial intelligence (AI) data centers and the launch of next-generation products. The investment opinion remains a 'buy.'
Jang Ho, a researcher at iM Securities, stated, "The Electronics BG maintains a unique position based on robust demand for AI data centers. With the supply of next-generation products to North American clients starting in June, profitability is expected to improve significantly."
He added, "For the second quarter, we anticipate standalone sales of 735.3 billion won and operating profit of 205.1 billion won, representing increases of 31.6% and 44.4%, respectively, compared to the same period last year. The expansion of AI accelerators and 800G supply, along with favorable semiconductor market conditions, will drive this performance improvement."
Jang also noted, "The average selling price (ASP) is expected to rise due to the expansion of next-generation product supply, leading to further profitability improvements. We project standalone sales for the year to reach 3.0226 trillion won and operating profit to hit 838.5 billion won, marking increases of 36.1% and 66.5%, respectively."
He mentioned that sales of optical modules are also rapidly increasing, supported by growing demand for network infrastructure. "Optical module products tend to have relatively high profitability, which will contribute to the improvement of low-end product profitability," he said.
Furthermore, he indicated that the demand for copper-clad laminate (CCL) due to the expansion of AI data centers is expected to lead to significant increases in production capacity for network use (NWB). Plans are in place to expand production capacity by two lines each this year and next, along with a gradual increase in a new production base in Thailand.
* This article has been translated by AI.
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