[Edaily Reporter Kwon Oh Seok ] NH INVESTMENT & SECURITIES announced on the 28th that it is maintaining its “Buy” investment rating and target price of 2 million won for DOOSAN(000150).
Lee Seung-young, an analyst at NH INVESTMENT & SECURITIES, explained, “Although the stock price has been sluggish recently due to increased uncertainty surrounding the acquisition of SK Siltron, we believe it is undervalued when considering the value of its core business,” adding, “The current stock price is trading at a 45.1% discount to NAV (net asset value).”
He analyzed, “Supplies of CCL for Company N’s new architecture began in June, and we expect it to start contributing significantly to revenue starting in the third quarter,” adding, “The company will pass on the burden of rising raw material costs by raising CCL prices for most products—excluding a few—during the first half of the year.”
He further elaborated, “Expansion of domestic and Chinese factories is underway, and production capacity for CCL used in network boards is scheduled to increase by approximately 50% compared to current levels by the first half of 2027.” He added, “Mass production at the new factory in Thailand is projected to begin in the second half of 2028. In the medium to long term, we expect to diversify our customer base as a result of this expansion in production capacity.”
Consolidated second-quarter results are expected to exceed consensus estimates, with revenue of 5.5861 trillion won (+4.5% year-over-year) and operating profit of 488.4 billion won (+36.5%). The analyst emphasized, “This is due to the strong performance of DOOSAN ENERBILITY,” noting, “The Electronics Business Group recorded revenue of 676.0 billion won (+42.0%) and operating profit of 201.3 billion won (+47.8%). This was driven by increased sales of products for semiconductors and optical modules compared to the previous quarter.”
He added, “High-margin optical module products can be manufactured using the existing low-end product line,” and noted, “We are presenting an annual revenue guidance of 2.8 trillion won for the Electronics Business Group. Revenue growth is expected to be driven by the full-scale impact of the expansion of the Chinese plant in the fourth quarter.”