[Edaily Reporter Kim Kyung-eun ] On the 10th, Hana Securities lowered its target price for DOOSAN(000150)from 2.42 million won to 1.27 million won, a 47.5% reduction. This adjustment reflects a revision in valuation multiples following declines in the stock prices of global competitors. However, the company’s core business—copper-clad laminate (CCL)—remains robust, and the firm maintained its “Buy” rating.

Kim Min-kyung, an analyst at Hana Securities, stated in a report released today, “DOOSAN’s stock price has recently undergone a significant correction due to overlapping concerns over a slowdown in AI capital expenditures (Capex) and a decline in market share among its clients.” However, she added, “Given the simultaneous expansion of production capacity, increases in selling prices, and improvements in the product mix focused on high-value-added products, the recent stock price correction fails to reflect the company’s medium- to long-term growth potential at all.”

DOOSAN’s closing price on the 9th was 611,000 won, leaving room for an approximately 108% rise to reach the target price set by Hana Securities.

In contrast to the stock price decline, earnings continue to show steep growth. DOOSAN Electronics BG’s third-quarter revenue this year reached 802 billion won, an 82% increase year-over-year. Operating profit rose 127% to 235.3 billion won, with an operating margin of approximately 30%. This was driven by expanded sales of high-value-added CCL for AI accelerators, network switches, and optical modules, despite limited production capacity. Price hikes and an increased share of high-value-added products also contributed to improved profitability.

Growth is expected to continue into the fourth quarter. DOOSAN’s revenue guidance for the Electronics BG in the fourth quarter is 814.6 billion won, a level similar to the previous quarter. However, analysts predict that actual results are likely to exceed the guidance, as the utilization rate at the new Changshu plant in China—which began full-scale operations late last month—is rising rapidly, driven primarily by demand for NVIDIA AI accelerators.

Analyst Kim predicted that the supply shortage of high-value-added CCL will persist for the next two to three years. He explained that while there has been a recent increase in requests from customers to sign long-term supply agreements (LTAs), the supplier-dominated market remains in place, allowing DOOSAN to secure a favorable position in price negotiations.

To meet growing demand, DOOSAN plans to expand its production capacity to 2.68 times its current level by the end of 2029. The expanded capacity will be allocated as follows: 60% in China, 30% in South Korea, and 10% in Thailand. The Chinese facility will address demand for application-specific integrated circuits (ASICs), such as AI accelerators, while the Gimje plant in South Korea will focus on producing products for optical modules.

The report also assessed that concerns regarding a slowdown in AI investment and the potential entry of new competitors are exaggerated. It concluded that as AI competition among Big Tech companies continues and the replacement cycle for accelerator platforms shortens, a market structure is forming that favors existing suppliers with proven technological capabilities and a track record of stable mass production.

Researcher Kim analyzed, “Considering the geopolitical situation and the AI competition among Big Tech companies, it is unlikely that AI investment will slow significantly in the short term,” adding, “The possibility of new CCL suppliers entering the market to supply NVIDIA is also limited.”