Daeduck Electronics대덕전자

Daeduck Electronics has rebounded strongly on AI-related substrate demand, with trailing profits well above 2025 levels, but the stock trades at a high multiple.

Daeduck makes printed circuit boards, mainly substrates for semiconductor packages, and sells mostly in Korea with exports to China, the US and Vietnam. On trailing twelve-month figures to H1 2026 it reported revenue of about ₩1.35T, operating income of about ₩175B and net income of about ₩152B, against ₩1.07T revenue and ₩48B operating income for 2025. The share price is ₩127,500, up 306% over one year but far below its 52-week high of ₩198,000.

What stands out

• Trailing operating margin is 12.9% and net margin 11.3%, compared with 4.6% and 2025 full-year levels, showing a sharp improvement in profitability.
• Valuation is high: P/E of 41.4, P/B of 6.4 and P/S of 4.7, while the data's DCF base value is ₩13,151, far below the current price.
• The balance sheet looks modest: liabilities are 40% of equity, cash is about ₩84B and borrowings about ₩7.8B.
• Foreign ownership rose from 14.1% to 15.4% over 60 days, but foreign investors were net sellers of about ₩221B over the last 20 days while institutions bought about ₩253B.
• Recent filings include a ₩615B new facility investment announced on 22 October 2026, and news coverage links the company to AI package substrate demand; several brokers' target prices are mentioned in headlines, but the data does not include independent analyst ratings.

What to watch

• Next full results and any updated guidance, since the recent profit rebound is based on trailing figures and the data does not include forecasts.
• Execution and funding of the ₩615B facility investment, given the company's cash and borrowings level.
• Shareholder filings from 23 October 2026 on changes in the largest shareholder's holdings, and continued foreign selling in the recent 20-day flows.