Korea Investment & Securities said on the 17th that the memory inventory issue that caused losses in Daeduck Electronics over the past two years has come to a conclusion, forecasting that substantial sales growth will begin in the second half of the year. Consequently, it raised its investment opinion to "buy" and newly set a target price of 28,000 won.
According to Korea Investment & Securities, Daeduck Electronics' projected earnings for the second quarter this year are expected to be sales of 231.1 billion won and an operating profit of 5.5 billion won. This aligns with market expectations. Projected sales for memory package substrates are 110.1 billion won. Sales are expected to increase compared to the previous quarter as the inventory issue is resolved. However, considering the sluggish front-end IT demand, a year-on-year decrease is estimated.
Park Sang-hyun, a researcher at Korea Investment & Securities, noted, "The expected sales for multi-layer substrates (MLB) are 43 billion won, as the detailed applications for networks expand from legacy equipment for telecommunications and enterprises to data center front-end switches," adding, "From the second half of the year, the performance contribution of AI accelerators is expected to become significant."
He continued, "Until the second quarter, only a small amount of sample sales will be reflected, but mass production sales will begin from the third quarter," and he said, "To respond to the volume for AI accelerators, the current quarterly capacity of 40 billion won is expected to increase to 100 billion won by the first half of next year."