Fact Source: Kyobo Securities / Report Date: July 1, 2026
Investment Opinion & Target Price: BUY (Maintain) / 100,000 KRW (Maintain)
Key Momentum: Dissipation of raw material cost lags driving core margin recovery, historical peak quarterly revenue in the lead frame segment, and sequential H2 package substrate turnaround.
📊 1. [Valuation Indicators & Investment Metrics Analysis]
- Investment Opinion & Target Price Trend: The ‘BUY’ rating and target price of KRW 100,000 are firmly maintained. Completely breaking free from the Q1 margins squeezed by raw material price surges and lagged selling price reflected timings, the stock’s undervaluation thesis is expected to gradually diminish.
- Key Financial Metrics & Valuation Forecasts:
- Revenue: 2024: KRW 603B ➡️ 2025: KRW 653B ➡️ 2026E: KRW 872B ➡️ 2027E: KRW 993B ➡️ 2028E: KRW 1,105B
- Operating Profit: 2024: KRW 57B ➡️ 2025: KRW 46B ➡️ 2026E: KRW 97B ➡️ 2027E: KRW 151B ➡️ 2028E: KRW 186B
- Operating Margin (OP Margin): 2024: 9.5% ➡️ 2025: 7.0% ➡️ 2026E: 11.1% ➡️ 2027E: 15.2% ➡️ 2028E: 16.8%
- P/E (Price-to-Earnings Ratio): 2024: 6.8x ➡️ 2025: 39.8x ➡️ 2026E: 17.1x ➡️ 2027E: 10.8x ➡️ 2028E: 8.6x
- P/B (Price-to-Book Ratio): 2024: 0.7x ➡️ 2025: 1.7x ➡️ 2026E: 1.9x ➡️ 2027E: 1.7x ➡️ 2028E: 1.4x
- ROE (Return on Equity): 2024: 11.0% ➡️ 2025: 4.3% ➡️ 2026E: 11.8% ➡️ 2027E: 16.7% ➡️ 2028E: 17.9%
🚀 2. [Market Opportunities (TAM) & Detailed Earnings Estimates]
- 2Q26 Earnings Preview & Estimated Data:
- Consolidated Revenue: Estimated at KRW 208.0B, marking a +32.2% Year-on-Year (YoY) expansion.
- Consolidated Operating Profit: Estimated at KRW 20.3B, up +87.1% YoY, with an OPM of 9.8%.
- Segment-Specific Breakdown:
- Lead Frame Division: Sustaining a strong upward trajectory fueled by just-in-time delivery demand and inventory restocking across automotive electronics and IT sectors. Following a historical monthly peak recorded in March, shipping volumes in May and June have sequentially outperformed March levels. Consequently, the lead frame division is projected to log its highest-ever quarterly performance since inception.
- Package Substrate Division: Encountered near-term softness through Q2, sliding Quarter-on-Quarter (QoQ) due to reliance on Low-Volume Fabs and temporary allocation cutbacks in a primary customer’s 1a tech node.
- H2 Outlook & Future CapEx Guidance:
- H2 Turnaround: From Q3 onward, the package substrate division is poised for substantial top-line acceleration and a sharp margin turnaround, underpinned by the activation of high-volume fabs from core anchor clients. Operations are expected to near Full-Capa scaling during the second half.
- Next-Gen Readiness: The lead frame division is finalizing product qualifying runs for global customers, while the package substrate arm is preparing up-front CapEx outlays to capture next-generation DDR6 technical spec changes.
📝 Editor’s Comment (by K-STOCK Editor)
Haesung DS’s 2Q26 preview signals a clear operational milestone where macro headwind resolution intersects with core manufacturing execution. The complete digestion of the raw material cost inflation mismatch and pricing lag that troubled prior quarters provides a highly reassuring structural setup. Notably, the lead frame segment tracking consecutive monthly historic highs through May and June underscores Haesung DS’s critical vendor lock-in within global automotive and electronic infrastructure chains. While temporary product mix under-runs in the substrate division held the consolidated quarterly OPM at 9.8%, the activation of high-volume customer fabs scheduled for Q3 will trigger an aggressive margin expansion. Trading at a 12M Fwd P/E of 17.1x for 2026E and compressively dropping to 10.8x for 2027E, the current multiple represents an attractive entry window, further fortified by secular upside from upcoming DDR6 technical migrations.
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