Kyobo Securities maintained its "buy" rating on Daeduck Electronics (KOSPI: 353200) on the 10th, raising its target price to 180,000 won — implying upside of 60.7% from the closing price of 112,000 won on 9th July.
The new target is derived by applying a price-to-earnings multiple of 25 times to the broker's estimated 2027 earnings per share of 7,179 won.
For the second quarter of 2026, Kyobo projects Daeduck's revenue at 382.5 billion won, up 55.6% year on year, with operating profit of 68 billion won — a rise of 2,241.8% year on year, equating to an operating margin of 17.8%.
Demand for FC-BGA substrates (flip-chip ball-grid arrays, used to connect high-performance chips to circuit boards) is broadening beyond automotive electronics and controllers into network equipment and optical modules. FC-CSP substrates and memory package substrates are also running at or near full capacity, the broker noted.
Kyobo acknowledged that Daeduck's shares had fallen roughly 40% from their 52-week high, amid broader market concerns over the sustainability of artificial intelligence capital expenditure. The stock's 52-week high stands at 190,900 won, against a low of 17,650 won.
For the full year 2026, the broker forecasts revenue of 1.5720 trillion won, up 47.6% year on year, with operating profit of 274 billion won — a 458.4% increase — and an operating margin of 17.4%.
Park Hee-cheol, the analyst covering the stock, described conditions as "an unprecedented boom, with strong demand emerging across every substrate category," adding that "visible earnings improvement is expected to continue through to 2027."