[Click eStock] "Dong-A Hwasung, Earnings Recovery and Hydrogen Fuel Cell Business Expectations"

[Asia Economy Reporter Hyungsoo Park] KB Securities analyzed on the 17th that Donga Hwasung's performance is improving due to increased operating rates at its India 1 and 2 plants and Mexico plant, despite low operating rates at its Russian subsidiary.

Donga Hwasung recorded sales of 94.9 billion KRW and operating profit of 4.1 billion KRW in the third quarter of this year, increasing by 27.4% and 49.6% respectively compared to the same period last year.

Researcher Sang-guk Lim of KB Securities said, "Despite concerns about an economic downturn, both automotive and home appliance sales showed favorable results," and explained, "Sales of battery cases to Atlas in the U.S. increased from 3.3 billion KRW last year to 5.4 billion KRW accumulated in the third quarter this year."

He added, "Sales of eco-friendly products such as battery pack gaskets for electric vehicles, PTC heater gaskets, and MEA are performing well," and "Currently, we are almost exclusively securing gasket orders for Hyundai Motor's electric vehicles."

He also emphasized, "Major clients such as Hyundai Motor's Ioniq 6 and Kia EV6 are increasing production of eco-friendly vehicles."

Researcher Lim analyzed, "It is time to pay attention to the growth potential of the 5kW-class high-temperature polymer electrolyte membrane hydrogen fuel cell system (HTPEMFC) developed by the subsidiary Donga Fuel Cell," and added, "It is expected to expand into Europe, the Middle East, and China."

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