[Click eStock] "DukSan Hi-Metal to Benefit from Package Substrate Boom"
On December 8, Hana Securities expressed expectations that DukSan Hi-Metal will benefit next year from favorable market conditions in the package substrate industry.
Kim Minkyoung, an analyst at Hana Securities, estimated that DukSan Hi-Metal will achieve sales of 141.8 billion won and operating profit of 22.4 billion won next year. This represents an increase of 22% and 46%, respectively, compared to this year’s projections.
Kim explained, "The strong performance in the semiconductor and package substrate sectors, which are major sources of demand, will drive improvements in the company's core business results," adding, "DukSan Hi-Metal is preparing to expand its production capacity at the request of its clients."
She further stated, "Production capacity for solder balls and core solder balls will be expanded by about 30% year-on-year, and micro solder balls by around 10%."
She emphasized, "The increased production volume from the expansion will begin contributing to results starting in the second quarter of next year," noting, "With the expansion of the artificial intelligence (AI) accelerator market, major package substrate clients have recently secured new customers."
Kim also projected, "Next year, the company is working to shift towards relatively higher-margin products," and added, "There is additional potential for further improvement in results."
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