[Edaily Reporter kyoungeun kim ] Meritz Securities has maintained its “Buy” rating on DOOSAN(000150)while raising its target price from 2.4 million won to 2.6 million won. This adjustment follows an upward revision of earnings estimates for the Electronics Business Group (Electronics BG). The stock has upside potential of 59.4% relative to its current price (1,631,000 won).
Yang Seung-soo, an analyst at Meritz Securities, stated in a report on the 23rd, “Although the Electronics BG is experiencing the same industry upswing as other copper-clad laminate (CCL) manufacturers and is posting overwhelming profitability, DOOSAN’s stock price continues to underperform relative to the sector,” adding He added, “Based on the current stock price, the enterprise value of the Electronics BG embedded in DOOSAN’s market capitalization remains undervalued, and there is ample room for the stock price to rise through a future revaluation of the Electronics BG.”

Researcher Yang explained, “Despite the burden of rising prices for key raw materials, Chonbang price pass-through is taking place due to industry-wide supply shortages, and overwhelming profitability is expected to be maintained following the first quarter.”
Analyst Yang analyzed that the increasing demand for optical modules driven by the expansion of artificial intelligence (AI) data centers is creating structural bottlenecks for CCL and printed circuit boards (PCBs).
He said, “The increasing scale of AI clusters is structurally expanding demand for high-speed optical communications, and optical modules are establishing themselves as core infrastructure for high-speed interconnects within AI data centers.”
In fact, Broadcom has identified PCBs as a key bottleneck in the optical communications market, noting that lead times for optical module PCBs have increased from the previous 6 weeks to up to 6 months.
DOOSAN Electronics BG is understood to hold the highest market share in the optical module CCL market. Revenue from optical modules reached 34.4 billion won in the first quarter of this year, a 10.9-fold surge compared to the same period last year (2.9 billion won). On an annual basis, it is projected to reach 153 billion won, a 4.2-fold increase from the previous year (30.5 billion won).
Researcher Yang emphasized, “As structural bottlenecks in PCB and CCL supply intensify due to the ongoing advancement of optical modules, CCL for optical modules is expected to emerge as a new growth driver for DOOSAN Electronics BG.”