Group Logo(source: doosan.com)
On September 8, Eugene Investment & Securities projected strong growth for Doosan(000150)’s electronics business group (BG), initiating coverage with a “Buy” rating and a target price of 980,000 won. Based on Doosan’s closing price of 579,000 won on September 5, the target implies an upside potential of 69.3%.
As of 9:42 a.m. the same day, Doosan shares were trading at 601,000 won, up 2.07% from the previous session.
The brokerage estimated that Doosan’s electronics BG will post third-quarter revenue of 492.8 billion won, up 97.4% year-on-year, with operating profit jumping 390% to 145.5 billion won. For the full year, revenue is projected to rise 89.2% to 1.91 trillion won, while operating profit is forecast to climb 356% to 559.0 billion won, implying an operating margin of 29.3%.
Analyst Joo-Hyung Lee of Eugene Investment & Securities said, “Doosan’s electronics BG is expected to continue improving in the second half, supported by a sharp increase in Nvidia rack server shipments. However, concerns over Doosan’s market share in Nvidia’s Rubin architecture and its high reliance on Nvidia have weighed on sentiment, with the stock delivering a three-month return of 5.5%, well below the KOSPI’s 14%.”
He added that worries over Doosan’s CCL (copper-clad laminate) share in Rubin architecture and the expansion of its ASIC (application-specific integrated circuit) customer base are excessive, emphasizing that “this represents a compelling buying opportunity.”
Lee further noted, “Industry sources suggest that the electronics BG is likely to maintain a solid market share within the Rubin architecture. The company is already supplying CCL for switch boards used in Amazon Web Services (AWS) EC2 Trn2 rack servers, and there is a strong likelihood it will supply CCL for compute trays in EC2 Trn3 rack servers to be shipped later this year. In addition, Doosan may also provide CCL for Google’s Tensor Processing Unit (TPU).”
*[KOSPI]Doosan(000150) engages in businesses including electronics, fuel cell power, distribution, and digital innovation. It produces copper-clad laminates, a core material for printed circuit boards(PCBs) in the electronics field and has established a full product lineup from power generation to residential use based on fuel cell technology in the fuel cell power sector. Market capitalization is 9.551 trillion won(as of September 5, 2024, closing price).
Group Logo(source: doosan.com)
On September 8, Eugene Investment & Securities projected strong growth for Doosan(000150)’s electronics business group (BG), initiating coverage with a “Buy” rating and a target price of 980,000 won. Based on Doosan’s closing price of 579,000 won on September 5, the target implies an upside potential of 69.3%.
As of 9:42 a.m. the same day, Doosan shares were trading at 601,000 won, up 2.07% from the previous session.
The brokerage estimated that Doosan’s electronics BG will post third-quarter revenue of 492.8 billion won, up 97.4% year-on-year, with operating profit jumping 390% to 145.5 billion won. For the full year, revenue is projected to rise 89.2% to 1.91 trillion won, while operating profit is forecast to climb 356% to 559.0 billion won, implying an operating margin of 29.3%.
Analyst Joo-Hyung Lee of Eugene Investment & Securities said, “Doosan’s electronics BG is expected to continue improving in the second half, supported by a sharp increase in Nvidia rack server shipments. However, concerns over Doosan’s market share in Nvidia’s Rubin architecture and its high reliance on Nvidia have weighed on sentiment, with the stock delivering a three-month return of 5.5%, well below the KOSPI’s 14%.”
He added that worries over Doosan’s CCL (copper-clad laminate) share in Rubin architecture and the expansion of its ASIC (application-specific integrated circuit) customer base are excessive, emphasizing that “this represents a compelling buying opportunity.”
Lee further noted, “Industry sources suggest that the electronics BG is likely to maintain a solid market share within the Rubin architecture. The company is already supplying CCL for switch boards used in Amazon Web Services (AWS) EC2 Trn2 rack servers, and there is a strong likelihood it will supply CCL for compute trays in EC2 Trn3 rack servers to be shipped later this year. In addition, Doosan may also provide CCL for Google’s Tensor Processing Unit (TPU).”
*[KOSPI]Doosan(000150) engages in businesses including electronics, fuel cell power, distribution, and digital innovation. It produces copper-clad laminates, a core material for printed circuit boards(PCBs) in the electronics field and has established a full product lineup from power generation to residential use based on fuel cell technology in the fuel cell power sector. Market capitalization is 9.551 trillion won(as of September 5, 2024, closing price).