[Click eStock] "Doosan Secures Growth Drivers by Canceling 12% of Treasury Shares"

EPS to Improve Through Treasury Stock Cancellation
Active Response to AI Demand with Electronics BG Expansion

According to securities industry analysis, Doosan's simultaneous announcement of a large-scale treasury stock cancellation and substantial facility investments has allowed the company to secure both an increase in per-share value and long-term growth drivers.

On the 22nd, Daishin Securities reported that researcher Lee Kyungyeon stated, "Through the cancellation of treasury shares, Doosan is enhancing its per-share value without cash outflow, while the large-scale capacity expansion lays the foundation for long-term growth." The 'buy' investment rating and the target price of 1.84 million won per share were also maintained.

12% of Outstanding Shares to Be Cancelled in Full on October 2

Doosan has decided to fully cancel 2,568,528 treasury shares, excluding those reserved for employee compensation, out of its total 3,201,028 treasury shares on October 2. This figure represents 12.18% of all outstanding shares. Once the cancellation is complete, the total number of issued shares will decrease to 18,514,807, while the treasury stock holding ratio will significantly drop from 15.18% to 3.42%.

Lee stated, "This cancellation will raise earnings per share (EPS) for this year to 38,360 won, up 3.1% compared to the previous estimate, and for next year to 55,005 won—a 13.9% increase. From next year, as the full effects of the cancellation are reflected, per-share value will improve markedly."

Doosan has also approved an additional investment worth 968.4 billion won to strengthen the competitiveness of its Electronics Business Group (Electronics BG). The investment consists of 421 billion won for domestic facilities and 547.4 billion won for overseas subsidiaries, with the investment period extending until December 2028. Upon completion of the capacity expansion, the company’s production capability will be nearly doubled from its current level.

High Profitability of Electronics BG to Bridge the Gap During Growth Phase

This investment is designed to meet the demand for 800G optical modules for AI data centers and to accommodate growing demand from existing AI accelerator clients. Lee explained, "Revenue from these new facilities will begin to be recognized in earnest starting in 2028. As of the end of the second quarter, Doosan holds 12 billion won in net cash, not net debt, on a standalone basis, so it has a strong financial foundation."

The time lag until 2028, when the effects of the capacity expansion fully materialize, is expected to be bridged by robust performance from Doosan’s Electronics BG. Although the group accounts for just 12.2% of consolidated sales, it comprises a significant 43.2% of operating profit, making it a core business segment. The sales price of copper-clad laminate (CCL) has been consistently increasing, from 51,022 won in 2024 to 69,132 won in the first half of this year.

Lee noted, "Expanding capacity in a phase where both volumes and prices are rising simultaneously is characteristic of responding to already-validated demand. Given that the operating margin of Electronics BG remains stable at around 30%, high profitability is expected to be maintained even after the expansion."

This content was produced with the assistance of AI translation services.