[IPO] Daesung Hightech "Leap to a Global Ultra-Precision Smart Machining Solutions Company"

On the 4th, Choi Ho-hyung, CEO of Daesung Hightech, held a press conference in Yeouido, Seoul, to introduce the company for its KOSDAQ listing. / Photo by Daesung Hightech

[Asia Economy Reporter Jang Hyowon] Daesung Hightech, a company specializing in ultra-precision smart machining solutions, is knocking on the door of the KOSDAQ market. Daesung Hightech plans to accelerate the expansion of collaboration with global companies after its listing.

On the 4th, Choi Ho-hyung, CEO of Daesung Hightech, held a press conference in Yeouido, Seoul, for the KOSDAQ listing and stated, “Currently, Daesung Hightech stands at a very important crossroads in expanding collaboration with related global companies in key parts for secondary battery equipment and overseas defense parts,” adding, “Through technological advancement, expansion of global networks, entry into high value-added advanced markets, and increased external credibility after listing, we will leap forward as a global ultra-precision smart machining solutions company.”

Daesung Hightech is a specialized company in precision machinery and parts applied to various industries, producing about 8,000 types of precision parts, Swiss-type automatic lathes, compact machining centers, and more. Since starting OEM supply to Japan’s Yamazaki Mazak in 1997, it has been recognized for its technological capabilities by providing various precision parts to global industrial machinery makers.

In 2014, Daesung Hightech expanded its business by acquiring Nomura (NOMURA) VTC, a Japanese Swiss-type automatic lathe company with a 75-year tradition. Swiss-type automatic lathes are high-difficulty industrial equipment capable of ultra-precision repetitive part production and automation. The various products made here are supplied to diverse industries such as medical, implants, IT, electric vehicles, and aerospace. It is known that only about 10 companies worldwide can manufacture Swiss-type automatic lathes.

Daesung Hightech’s growth engine is the ‘Compact Machining Center’ business, which processes electric vehicle battery cases and modules. This business is rapidly growing alongside the expansion of the secondary battery market. In 2018, Daesung Hightech succeeded in mass-producing and selling the industry’s first high-productivity two-head (TWO-HEAD) compact machining center specialized for electric vehicle battery part processing, supplying it to partners of global electric vehicle battery manufacturers.

Last year, on a separate basis, sales reached 102.7 billion KRW and operating profit 11.7 billion KRW, marking a 41.4% increase and a return to profitability compared to the previous year. The sales composition was 57% Swiss-type automatic lathes, 24% precision parts, and 17% compact machining centers. Order amounts recorded 64.5 billion KRW in 2019, 80.3 billion KRW in 2020, and 108.6 billion KRW in 2021, showing an average annual growth rate of about 30% over the past three years.

CEO Choi Ho-hyung said, “We currently have networks with 75 global companies in 25 countries including the U.S., China, and Japan, and based on these networks, new business entries are actively underway,” adding, “Due to orders in new industries and high value-added items, we expect to achieve the highest order amount in history this year.”

Daesung Hightech plans to continue growth by maximizing profitability through expanding new businesses in advanced industrial fields. It has secured a high value-added product lineup including MSO-COIL that improves electric vehicle motor efficiency, laptop and foldable phone hinges, semiconductor inspection probe pins, hydrogen vehicle shafts which are key parts for hydrogen vehicles, and overseas defense parts, and plans to begin full-scale mass production in the future.

Meanwhile, Daesung Hightech’s total number of publicly offered shares is 3.32 million, with a proposed price band of 7,400 to 9,000 KRW, making the total public offering amount approximately 24.6 to 29.9 billion KRW. Demand forecasting will be conducted on the 4th and 5th to finalize the offering price, followed by subscription on the 9th and 10th, with a planned KOSDAQ listing on August 22. The lead underwriter is Shinhan Investment Corp.

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