DS Investment Securities said on the 23rd that the increase in the equity value of its subsidiaries Doosan Enerbility and Robotics will be reflected in Doosan's share price. It maintained a Buy rating and raised the target price to 1 million won from 930,000 won. Doosan's closing price the previous day was 791,000 won.
Kim Su-hyeon, an analyst at DS Investment Securities, said, "The equity value of Doosan Enerbility and Robotics has risen," and added, "In particular, Doosan Enerbility's corporate value will be maintained for a considerable period." A conservative 70% discount rate was applied, compared with 60% for other holding companies.
Kim said third-quarter (July–September) results are insufficient, but strong fourth-quarter (October–December) results at the Electronics business group (BG) will be reflected in the share price. For the third quarter, both revenue and operating profit at the Electronics BG are expected to decline 10% from the previous quarter. However, Kim said this has been fully reflected in the share price over the past three months.
"On the contrary, from the fourth quarter, when the volume ramp-up for GB300 gets into full swing, results are expected to be continuously reflected in the share price," Kim said. "With a rise in recurring volumes such as for memory, we forecast fourth-quarter revenue of 491 billion won and operating profit of 142 billion won, and there is a possibility it will exceed the estimate and top 500 billion won."
Kim added, "For GB300 as well, the core computing tray has effectively been confirmed for sole supply, dispelling talk of competitor entry and once again proving technical superiority," and said, "Sales to N are expected to increase 54.3% year over year, with GB300 in the first half of next year and initial sales of Rubin in the second half."
Kim also said, "ASIC has been somewhat delayed versus expectations, but sales to AWS will also begin in earnest next year. Rubin CPX, which applies GDDR7, is an entirely new momentum," adding, "We began mass-supplying CCL for GDDR7 last year. A significant revenue boost is expected even without capacity expansion."