Business · Markets · 8 hrs ago
Hana Securities cuts Doosan target price but keeps buy rating
Hana Securities cut its Doosan target price to 1.27 million won from 2.42 million won but kept its buy rating.
The brokerage said worries about slower AI investment and lost market share had weighed heavily on Doosan's share price.
Doosan's high-end circuit-board material demand remains strong, according to the analyst, despite those concerns.
The material, called copper-clad laminate, is used in printed circuit boards in electronic products.
Doosan's electronics business recorded third-quarter sales of 802 billion won, up 82% from a year earlier, as sales of materials for AI accelerators and network equipment increased.
A new plant in China began operating in late October, and the analyst expects its production to support fourth-quarter results.
Doosan plans to add capacity through the end of 2029, while the analyst expects tight supply of these materials to continue for two to three years.
Hana Securities lowered its target price for Doosan to 1.27 million won from 2.42 million won and maintained its buy rating.
The brokerage cited a fall in share prices of competitors in copper-clad laminates, or CCL.
Hana Securities said demand for high-value CCL remained firm despite concerns about slower AI investment and stronger competition.
Doosan’s electronics materials business reported third-quarter revenue of 802 billion won, up 82% from a year earlier.
The brokerage said a new facility in Changshu, China, and planned capacity expansion could support growth.
- Who
- Hana Securities analyst Kim Min-kyung assessed Doosan.
- What
- Hana Securities cut Doosan’s target price to 1.27 million won from 2.42 million won while maintaining its buy rating.
- When
- November 10; the article does not state a year in its text.
- Where
- Doosan’s electronics materials business, including a new production facility in Changshu, China.
- Why
- Hana Securities cited lower share prices among CCL competitors, while saying demand for high-value CCL remained firm.
This story does not have two clearly opposing sides.
Doosan’s electronics materials business recorded revenue of 802 billion won, up 82% from a year earlier.
Doosan’s new production facility in Changshu, China, began full-scale operations.
Hana Securities cut its target price for Doosan and maintained its buy rating.
Doosan is carrying out expansion projects that will add capacity equal to 168% of its current production capacity.
- New target price
- 1.27 million won
- Previous target price
- 2.42 million won
- Rating
- Buy, maintained
- Third-quarter electronics materials revenue
- 802 billion won, up 82% year on year
- Doosan’s stated fourth-quarter electronics materials revenue outlook
- 814.6 billion won
- Planned added capacity
- Equal to 168% of current production capacity by the end of 2029
What people are saying
Despite the share price decline, the industry is continuing to show a firm trend, supported by demand for high-value CCL.
There is little likelihood that AI investment will slow sharply in the short term, considering geopolitical conditions and big tech’s AI competition.
The recent share price does not reflect the company’s medium- to long-term growth potential at all.