[Edaily Reporter Lee Hye-ra] On the 16th, Meritz Securities projected that #Daeduck Electronics would continue its earnings growth momentum, driven by price hikes across its entire product lineup, the expansion of high-value-added AI-related products, and aggressive production capacity expansion. The firm maintained its “Buy” rating and raised the target price from 190,000 won to 200,000 won.

Yang Seung-soo, an analyst at Meritz Securities, stated in a report released that day, "As price increases are being fully passed on to both new and existing products, we are seeing the effect of rising average selling prices (ASP) across the entire product lineup," adding He added, "Rising raw material costs are being reflected in selling prices across all major business segments, including memory package substrates (substrates connecting semiconductor chips to motherboards), FC-BGA (package substrates for high-performance semiconductors), FC-CSP (package substrates for mobile and home appliances), and MLB (multi-layer printed circuit boards)."
Daeduck Electronics is expected to exceed market expectations, with second-quarter revenue increasing 55.1% year-over-year to 381.8 billion won and operating profit surging 3,224.6% to 62.0 billion won.
Researcher Yang said, “With the recovery in demand, FC-BGA utilization rates are also estimated to be approaching the 80% level.”
Analysts also note that the effects of capacity expansion are now taking full effect. Daeduck Electronics announced a 213 billion won investment in May and has begun construction of new production facilities.
The company’s existing FC-CSP production capacity is estimated at approximately 900 billion won, and the new plant is expected to begin operations in the third quarter of 2027. Analyst Yang noted, “Once the new plant is fully operational, production capacity is estimated to increase by about 80% compared to current levels.”
Investment is also expanding in the FC-BGA business. A previously suspended investment of 90 billion won has been resumed, and discussions with clients regarding advance payments for additional capacity expansion are reportedly underway.
Researcher Yang also cited growing AI-related demand as a key growth driver. He noted, “In the MLB business, sales to aerospace customers are steadily increasing, and we expect to begin supplying new aerospace customers starting in the fourth quarter.” He added, “With the start of shipments of compute boards (computing boards for servers and AI systems) to major AI customers in the second half of the year, we anticipate improvements in product mix and profitability.”
Daeduck Electronics began mass production of large-area FC-BGA in June and plans to fully ramp up production of large-area, high-layer FC-BGA for AI networks in the second half of the year.
Researcher Yang commented, “While the lack of mass production experience with large-area FC-BGA has acted as a valuation discount factor, this launch is expected to gradually resolve that issue.” He further assessed, “The existing memory package substrate and MLB businesses are also entering a structural inflection point, driven by capacity expansion and growing demand for high-value-added products, making the application of a premium multiple reasonable.”