Dade Electronics' target stock price has been raised due to the expectation of growth from investing in a new memory factory

DB Securities considers Daeduck Electronics’ new memory facility investment a growth signal and raised its target stock price from 155k won to 175k won on the 12th. The institution believes that the new factory investment is not only a simple equipment expansion but also can drive improvements in production efficiency and expand sales in the medium to long term.

Based on Daeduck Electronics’ investment plan announced the previous trading day, DB Securities analyzes that the new factory is likely designed to achieve higher productivity on land similar in size to the existing building 1. In the electronic component industry such as semiconductor substrates, the ability to produce a stable quantity within the same area greatly impacts profitability, and this investment is interpreted as focusing on such efficiency strategies.

The securities firm expects that after this investment is completed, Daeduck Electronics’ annual sales could increase by approximately 350 billion to 400 billion won. Based on this forecast, sales in 2028 are expected to reach about 1.1 trillion won. The underlying logic is that during the phase of renewed demand for memory, securing production capacity in advance allows the company to more fully enjoy the benefits of the industry recovery.

Concerns about funding for the investment are considered relatively minor. As of the end of 2025, Daeduck Electronics holds assets including cash and cash equivalents worth 228 billion won, with a debt ratio of 31%, which is relatively low among industry peers. Although investment amounts during factory construction may increase further, this means that a significant portion can be managed with internal funds and borrowing from the financial sector. Based on these financial conditions, analysis suggests that the possibility of raising large-scale new funds externally is limited.

DB Securities maintains a buy investment opinion on Daeduck Electronics. The previous trading day’s closing price was 125.8k won. The market believes that the speed of the semiconductor industry’s recovery and the actual effect of capacity expansion will influence future stock price movements. Whether this trend can further develop in the future depends on whether Daeduck Electronics successfully completes equipment expansion as planned and converts the increased production capacity into improved performance.