Daiyang Metal Sees Performance Improvement... Growth Expected from Export Expansion and Rising Nickel Prices

Organizational Stability Achieved After Ending Management Dispute Last Year
Expanded Exports Through Diversification of Trading Partners, Including Targeting Europe
Product Price Hikes Driven by Surging Nickel Prices
Accelerating Growth Through Investment in Special Alloys

Daeyang Metal, a company specializing in stainless steel cold-rolled sheets, has entered a growth trajectory, showing a recovery in performance following the resolution of its management rights dispute. With the organization stabilized, the company is seeing a clear improvement in results, driven by expanded exports and the effect of rising raw material prices.

According to data disclosed by the Financial Supervisory Service on April 21, Daeyang Metal recorded sales of 223.4 billion won, operating profit of 5.6 billion won, and net profit of 9.4 billion won last year. Sales increased by 5.4% compared to the previous year, while operating profit surged by approximately 300%. Notably, the company achieved a turnaround by returning to profitability in net income after two consecutive years of losses.

This improvement in performance is attributed to diversification of trading partners and an export strategy focused on high value-added products. The company maintained stable relationships with existing key clients while targeting home appliance manufacturers in Europe, which proved instrumental in raising the export ratio to over 50%.

The rise in raw material prices is also having a positive impact on performance. As nickel accounts for 60–70% of the manufacturing cost of stainless steel, a recent increase in nickel prices has provided grounds for product price hikes, while also boosting inventory valuation gains. Nickel prices, which were below $15,000 per ton at the end of last year due to reduced mining volumes in Indonesia—a major producer—rose to around $18,000 per ton as of April 17. This trend is expected to have a positive impact on industry peers such as Hyundai BNG Steel and Hwangkum ST.

In addition, improved profitability driven by a higher exchange rate is strengthening expectations for overall performance improvement among nonferrous metal export companies.

Daeyang Metal faced significant challenges during its management dispute with the KH Group in the past. In the process of defending against a hostile takeover attempt, the company was embroiled in lawsuits and physical confrontations, resulting in an inability to focus on its core business, which led to decreased sales and increased costs. In particular, a loss of approximately 12.7 billion won was incurred due to the impaired value of shares in its subsidiary Young Poong Paper, resulting in a total net loss of 15.2 billion won.

Subsequently, the company sold Young Poong Paper last year and increased the largest shareholder’s stake to 26.7%, driving efforts toward management stabilization. Since the end of the dispute, Daeyang Metal has been accelerating organizational restructuring and business normalization.

The company has selected the defense industry as its next growth engine and is considering investment in special alloy material companies. Its strategy is to create synergy based on its nonferrous metal processing technology and the capabilities accumulated in its existing steel business.

A company representative stated, “Our existing stainless steel business has entered a stable phase. We are considering acquiring a special alloy company that supplies materials to the defense sector by leveraging our advanced technology and operational experience, and we aim to establish a new growth foundation through this.”

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