iM Securities maintained a "buy" rating for Daeduck Electronics on September 28 and raised its target price from 150,000 won to 190,000 won. The increase is attributed to the growing demand for substrates used in artificial intelligence (AI), which is expected to drive revenue growth.
Ko Ui-young, a researcher at iM Securities, stated, "Despite the average exchange rate of the won to the dollar expected to drop from the 1,500 won range in the second quarter to the low 1,400s in the third quarter, we are maintaining our business plan with an operating profit target of 70 billion won." This indicates that the company is holding steady on its profit outlook despite the declining exchange rate.
The annual growth in performance is also projected to be significant. This year, revenue is expected to reach 1.611 trillion won, a 51.2% increase from the previous year, while operating profit is anticipated to rise to 267 billion won, marking a 443% increase.
Next year, revenue is forecasted to reach 1.921 trillion won, with operating profit expected to hit 399 billion won. By 2028, these figures are projected to grow to 2.304 trillion won and 583 billion won, respectively. The operating profit margin is also expected to rise from 16.5% this year to 20.8% next year, and 25.3% by 2028.
The flip-chip ball grid array (FC-BGA) is expected to drive Daeduck Electronics' growth. FC-BGA is a high-performance semiconductor package substrate that uses fine solder balls as contact points. Daeduck began mass production of FC-BGA for switches in June, and supply to client companies is expected to ramp up in the fourth quarter. The company aims to start mass production of substrates for physical AI in the second half of next year.
Daeduck has announced plans to expand its FC-BGA production capacity from 450 billion won this year to 650 billion won in the first half of next year. iM Securities commented, "Given the recent strong demand for ABF, this investment scale is likely a conservative decision."
Demand for BT substrates is also expected to remain robust. iM Securities noted, "In the second quarter of this year, a line transition resulted in a production capacity increase effect of around 50 billion won," adding that annual production capacity is expected to expand from 950 billion won to 1.2 trillion won in the first half of next year.
Ko Ui-young, a researcher at iM Securities, stated, "Despite the average exchange rate of the won to the dollar expected to drop from the 1,500 won range in the second quarter to the low 1,400s in the third quarter, we are maintaining our business plan with an operating profit target of 70 billion won." This indicates that the company is holding steady on its profit outlook despite the declining exchange rate.
The annual growth in performance is also projected to be significant. This year, revenue is expected to reach 1.611 trillion won, a 51.2% increase from the previous year, while operating profit is anticipated to rise to 267 billion won, marking a 443% increase.
Next year, revenue is forecasted to reach 1.921 trillion won, with operating profit expected to hit 399 billion won. By 2028, these figures are projected to grow to 2.304 trillion won and 583 billion won, respectively. The operating profit margin is also expected to rise from 16.5% this year to 20.8% next year, and 25.3% by 2028.
The flip-chip ball grid array (FC-BGA) is expected to drive Daeduck Electronics' growth. FC-BGA is a high-performance semiconductor package substrate that uses fine solder balls as contact points. Daeduck began mass production of FC-BGA for switches in June, and supply to client companies is expected to ramp up in the fourth quarter. The company aims to start mass production of substrates for physical AI in the second half of next year.
Daeduck has announced plans to expand its FC-BGA production capacity from 450 billion won this year to 650 billion won in the first half of next year. iM Securities commented, "Given the recent strong demand for ABF, this investment scale is likely a conservative decision."
Demand for BT substrates is also expected to remain robust. iM Securities noted, "In the second quarter of this year, a line transition resulted in a production capacity increase effect of around 50 billion won," adding that annual production capacity is expected to expand from 950 billion won to 1.2 trillion won in the first half of next year.
* This article has been translated by AI.
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