Daishin Securities Co. said on the 19th that Daeduck Electronics is expected to see a continued reflection of valuation reassessment next year, adding that the stock has upside potential. It maintained a "Buy" rating and raised its target price by 21.3% to 57,000 won. Daeduck Electronics' previous closing price was 47,800 won.
Daishin Securities Co. projected that Daeduck Electronics will post 1.23 trillion won in revenue and 126.1 billion won in operating profit in 2026. Those would be up 17.3% and 179.1%, respectively, from a year earlier.
Park Kang-ho, an analyst at Daishin Securities Co., said, "This is a period when profitability improves more than sales growth," and noted, "We focus on the potential for earnings upgrades since 2022, when operating profit reached 232.5 billion won."
First, in the first quarter of 2026, utilization is expected to rise in non-memory packages (FC BGA), leading to a turnaround. In addition, starting in the second quarter, the company is projected to enter a phase of expanding profitability.
Park said, "With the acceleration of automotive electrification and the addition of customers, FC BGA sales are estimated to improve from 1.7821 trillion won in 2024 to 212.3 billion won this year." He also projected that in 2026, FC BGA sales will expand to 316.3 billion won, up 49% from a year earlier.
Also, starting in the fourth quarter of this year, the company will begin supplying FC BGAs for Autonomous Driving semiconductors to a North American electric vehicle maker, and it expects a mix effect as this expands in 2026.
With high utilization maintained and increased sales of server-bound packages including graphics DRAM (GDDR7), memory-bound packages are also projected to deliver high profitability in 2026.
Park said, "Among package makers, the share of server-bound and DDR5 is the highest," adding, "In 2026, sales of server-bound GDDR7 and LPDDR5, a low-power DRAM related to SoCAMP 2, are expected to increase."
He also explained that global artificial intelligence (AI) server investment, including data centers, translates into increased sales for Daeduck Electronics and connects to benefits from improved profitability.
Daishin Securities Co. estimated Daeduck Electronics' memory-bound package sales this year at 547.4 billion won, up 14.9% from a year earlier.