Yuanta Securities on the 8th forecast that Daeduck Electronics (KOSPI: 353200) will report revenue of 373.9bn won in the second quarter of 2026, up 52.1% year on year, with operating profit of 63.5bn won — implying an operating margin of 17.0%. The figure would surpass the market consensus of 60bn won by 5.6%.
In the memory substrate segment, average selling prices (ASPs) are rising visibly, driven by the early mass production of GDDR7 modules destined for major integrated device manufacturers (IDMs) and the ramp-up of SOCAMM production. Existing mobile LPDDR volumes are being converted to SOCAMM, simultaneously improving the product mix and lifting unit prices.
Utilisation rates at the FC-BGA (flip-chip ball grid array) division have risen to the mid-70% range and are expected to approach 80% in the second half of the year. Price increases for memory substrates have begun in earnest this quarter, and negotiations over non-memory price hikes are also under way.
Three themes are expected to define the second half. First, an improved memory product mix coupled with capacity expansion investment. Second, a broadening of FC-BGA applications alongside further capacity additions. Third, expansion of MLB (multi-layer board) capacity and a greater share of high-margin products. Once the memory expansion is complete, production capacity is expected to rise by 80% relative to current levels, with the revenue contribution forecast to materialise from the second half of 2027.
In the FC-BGA division, large-body substrate applications are being expanded sequentially. The company anticipates entering the server switch market with 50–60 body substrates in the second half of 2026, followed by automotive and Physical AI applications with 70-body substrates in the first half of 2027. In the MLB segment, Daeduck has secured orders for AI accelerator boards in addition to its existing high-margin satellite communications business.
Yuanta Securities maintained its Buy recommendation and target price of 200,000 won. The target is derived by applying a target price-to-earnings multiple of 33.9 times to its 2027 earnings per share estimate of 5,691 won. Based on the current share price of 116,700 won (as of 7th July), the implied upside is 71%.
On an annual basis, Yuanta projects full-year 2026 revenue of 1.534tn won and operating profit of 260bn won (operating margin: 16.9%). Growth is expected to continue into 2027, with revenue of 1.873tn won and operating profit of 359.1bn won (operating margin: 19.2%).