With a 1 Trillion-Won Investment and Shareholder Returns... "Doosan at 1.4 Million Won Could Rise to 2.75 Million Won"

[Financial News] Doosan's stock is expected to nearly double, driven by explosive growth in its electronic-materials business, a large-scale 1 trillion-won expansion, and shareholder-friendly policies.
Kim Soo-hyun, an analyst at DS Investment & Securities, said on the 18th regarding Doosan, "Its credibility in fulfilling the value-up commitments it made to the market is the highest among listed companies, thanks to the planned cancellation of all treasury shares by the end of this year and inorganic growth through the acquisition of Siltron." He added, "We raised the target price to reflect the company's shift to a net cash position and the sharp upward revision to earnings estimates for its Electronic BG division." The brokerage maintained its Buy rating and raised the target price by 14.6% from 2.4 million won to 2.75 million won. The upside from the previous trading day's closing price of 1.413 million won on September 17 is 94.6%.
Doosan announced the previous day that it had decided to invest a total of 968.4 billion won in production facilities to meet growing demand for copper-clad laminate (CCL) driven by the expansion of artificial intelligence (AI) data centers. It will invest 421 billion won in South Korea and 547.4 billion won in its Chinese subsidiary in Changshu. The investment period runs through the end of December 2028. The investment is understood to target not only demand for network boards used in AI accelerators but also optical modules and future application-specific integrated circuits (ASICs).
When the new lines begin operations in 2028 and 2029, a total of 35 additional lines are expected to come online, including the two lines in Thailand announced early this year. At current unit prices, this capacity could generate about 4.2 trillion won in additional revenue in 2029 alone, equivalent to 1.5 to 1.6 times this year's estimated annual Electronic BG revenue of 2.793 trillion won.
The sharp growth in CCL for optical transceivers (optical modules) is also driving performance. Sales of CCL for optical modules totaled about 80 billion won in the first half, more than ten times the figure from the same period last year. Second-half sales are estimated at 220 billion won, nearly triple the first-half figure, as demand surges. Analysts said that data-transmission specifications have advanced from 400G to 800G and 1.6T, making the use of ultralow-loss products essential, while selling prices continue to rise as a result.
The large-scale shareholder-return program was also cited as a positive factor for the stock price. Doosan resolved to cancel all 2,568,528 treasury shares on October 2, comprising 1,956,424 common shares and 612,104 preferred shares, excluding 632,500 shares reserved for employee stock-based compensation. The shares are worth approximately 2.7644 trillion won at market value and account for 12.18% of the total shares outstanding.
DS Investment & Securities forecasts Doosan's 2026 consolidated revenue at 21.946 trillion won and operating profit at 1.558 trillion won. This represents increases of 10.9% in revenue and 46.6% in operating profit from the previous year. Within that total, the Electronic BG division is expected to generate 2.793 trillion won in revenue and 845 billion won in operating profit, leading companywide growth.
Kim Soo-hyun said, "Margins on optical-module CCL are estimated at around 20%, and additional margin improvement is expected due to supply bottlenecks and the shift to higher specifications. As the proportion of high-value-added optical modules increases, the overall average selling price (ASP) of Electronic BG's CCL is expected to rise by 15% to 20% from the previous year."
[email protected] Han Young-jun Reporter