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Photo = Doosan Robotics |
[Alpha Biz= Reporter Kim Sangjin] DS Investment & Securities raised Doosan's target price from 300,000 KRW to 350,000 KRW on December 13.
The firm estimates that mass production of CCL for North American N Company's "B" model began in December, with significant orders already placed for exclusive supply. DS Investment & Securities also noted that Doosan's electronics BG is focusing on expanding into big tech companies in the U.S., which are accelerating their AI chip development. The company is also undergoing qualification testing for products intended for one of these big tech firms, with full-scale orders expected to begin in 2025.
The report highlights that Meta, Google, and OpenAI outsource their chip production to Broadcom, while Amazon, which has recently solidified its AI strategy, works with Marvell Technology. Doosan's electronics BG is likely to engage with one of these big tech companies, according to DS Investment & Securities.
For 2025, DS Investment & Securities forecasts that Doosan's electronics BG revenue will grow by 30.7% year-on-year to 1.2 trillion KRW, and operating profit will rise by 59.2% to 178 billion KRW.
The firm also pointed out that the full-scale production of N Company's "B" model, additional orders driven by big tech's shift to in-house ASIC production, and the potential early release of N Company's next-generation "R" model could lead to higher-than-expected results. Doosan is currently conducting qualification testing for the "R" model, and its success would benefit the company.
Finally, DS Investment & Securities noted that Doosan holds 18% of its own shares, some of which may be subject to a stock buyback, expected in 2025. With the company entering full production capacity by that time, further expansion and potential funding via internal cash or some of its repurchased shares may be necessary.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
