Daeyang Geumsok, Operating Profit of 3.9 Billion KRW in H1, Up 1316% YoY... "Strong Performance to Continue in H2"

[Asia Economy Reporter Hyunseok Yoo] Daeyang Metal announced on the 17th that its operating profit for the first half of the year improved by 1316.0% compared to the same period last year, reaching 3.9 billion KRW. During the same period, sales and net profit grew by 22.2% and 2998.3%, achieving 84.5 billion KRW and 3.7 billion KRW, respectively.

In the second quarter as well, sales reached 44.9 billion KRW, a 44.7% increase compared to the same period last year. Operating profit and net profit recorded 2.6 billion KRW and 1.8 billion KRW, respectively. The company succeeded in turning profitable due to a significant improvement in profitability.

This steep performance growth is interpreted as being driven by the recovery of the global steel market and rising raw material prices. With the increase in global home appliance demand and a surge in home appliance sales from major clients such as LG and Samsung, Daeyang Metal continues to achieve stable external growth and significant profitability improvement.

A company representative explained, “In the IT and home appliance industry, keeping pace with rapid market trends and model generation changes is a core competitive advantage. Daeyang Metal has established a production system that can quickly respond to product line changes, and since April, it has achieved stable business performance based on improving results through the development of new products for home appliances such as dryers, heat exchangers, and dishwashers.”

The outlook for this year’s performance is also bright. Daeyang Metal is actively expanding its stainless steel production facilities and increasing supply volume in its existing business, so performance improvement is expected to be more prominent in the second half of the year. The company plans to continuously expand the proportion of premium home appliances to increase both sales volume and profitability. Since July, Daeyang Metal has been promoting the expansion and relocation of its southern business office to supply new volumes to LG Electronics and enhance delivery capabilities for clients. Based on the expansion of new volume supply for LG Electronics’ new dishwasher products and new clients in the Yeongnam region, the company is expected to continue its earnings surprise streak in the second half of the year.

New business achievements for securing future growth are also anticipated. Daeyang Metal recently secured the position of the second-largest shareholder in Hylium Industries, a specialized company in the “liquefied hydrogen mobility platform,” and is entering the liquefied hydrogen new business. Daeyang Metal plans to create synergy in the liquefied hydrogen business by collaborating on the production of lightweight drone liquefied hydrogen tanks using its existing stainless steel thin plate technology with Hylium.

A company representative said, “In the second half of the year, it is predicted that revenge consumption and stay-at-home demand caused by COVID-19 will drive growth in the IT and home appliance markets, so the expansion of the southern business office is expected to broaden entry into the premium home appliance market. We will continue efforts to enhance corporate value through new businesses such as the liquefied hydrogen business, based on the growth of our core business.”

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