Doosan Group plunges 30% in three trading days... “The stock’s decline is excessive”

[Financial News] Doosan Group’s share price plunged nearly 30% in just three trading days, prompting analysts to say the recent decline has been excessive.
On the 10th, Hana Securities maintained its “Buy” rating on Doosan Group, saying it expects the company to sustain solid earnings growth, driven by demand for high-value-added copper-clad laminates (CCL). However, reflecting a valuation adjustment following share-price declines among global CCL competitors, it cut its target price by 47.5%, from KRW 2.42 million to KRW 1.27 million.
Minkyung Kim, an analyst at Hana Securities, said, “The recent share-price correction stems from concerns about a slowdown in AI capex and concerns about a shrinking share at customer companies.” She noted, “Given the geopolitical situation and competition among big tech companies in AI, the likelihood of AI investment slowing sharply in the short term is low.” Doosan Group shares closed the previous day at KRW 611,000, down 29.85% in just three trading days.
She added, “As accelerator companies move through platform transitions more quickly, conditions are taking shape that favor established suppliers with strong technological capabilities and a stable track record of mass production.” She judged that “with capacity expansion, selling-price increases and a shift toward a higher-value-added product mix all happening at once, the recent share-price correction has failed to reflect any of the company’s medium- to long-term growth potential.”
Accordingly, she forecast that earnings growth would continue in the fourth quarter, following the third quarter. Doosan Group’s third-quarter revenue from its Electro-Materials Business Group (business division) totaled KRW 802 billion, while operating profit came to KRW 235.3 billion, up 82% and 127%, respectively, from the same period a year earlier.
Kim said, “Despite limited production capacity, sales of high-value-added CCL for AI accelerators, network switches and optical modules increased, and earnings growth continued as the effects of selling-price increases and an improved product mix came through.” She forecast that “the company is likely to post results above guidance in the fourth quarter as well.”
She added, “Doosan Group has recently been receiving more requests from customers to sign long-term agreements (LTAs), but it plans to pursue them selectively, taking capacity management and pricing terms into account.” She continued, “With the CCL supply shortage expected to persist for the next 2–3 years, suppliers are likely to secure favorable pricing terms if they sign LTAs.”

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