Daedong Sets 2030 Revenue Target at 3.5 Trillion Won... Transitioning to an 'Agricultural Physical AI' Company

Daedong, Daedong Gear, and Daedong Metal Announce Value-Up Plan
Present Mid- to Long-Term Growth Strategy Centered on AI and Robotics

Daedong Group has announced plans to expand its business portfolio beyond its traditional focus on agricultural machinery, establishing a foundation for sustainable growth by centering on artificial intelligence (AI) agricultural operation platforms and robotics·advanced materials businesses.

The three listed companies under Daedong Group—Daedong, Daedong Gear, and Daedong Metal—disclosed their value enhancement (Value-Up) plan on May 7. This plan outlines a mid- to long-term growth strategy and shareholder return policy based on 'Agricultural Physical AI.' Established in 1947, Daedong has led the mechanization of agriculture in Korea by supplying complete agricultural machinery such as tractors, combines, and rice transplanters. Subsequently, together with Daedong Gear and Daedong Metal, the group established vertical integration in core power transmission parts for agricultural machinery and equipment, such as missions, gears, and engine castings, thereby strengthening its business competitiveness.

Currently, Daedong Group is in the process of transitioning from an agricultural machinery manufacturer to an 'Agricultural Physical AI' company. Daedong plans to build a 'subscription-based AI agriculture service' model that collects and learns agricultural data through AI-based autonomous agricultural machinery and agricultural robots, and continuously upgrades equipment features and performance through over-the-air (OTA) software updates. Additionally, by combining 'AI Agricultural Agent Services' that encompass both open-field precision agriculture and greenhouse smart farming, the company aims to shift its business structure from one-time equipment sales to a recurring revenue model centered on AI agricultural operation solutions.

A global market expansion strategy was also presented. Daedong plans to secure more than 1,000 dealer networks in North America and more than 700 in Europe, its key overseas markets, by 2030. Through this, the company aims to increase the share of revenue from new businesses from 11.9% last year to 25.9% by 2030. Daedong has set targets of achieving consolidated revenue of 3.59 trillion won, a price-earnings ratio (PER) of 10 times, a price-to-book ratio (PBR) of 2 times, and a return on equity (ROE) of 20% by 2030.

Daedong Group's Three Companies Aim for 2030 Goals

Daedong Gear will expand its electric vehicle parts business while entering the core robot parts sector, such as reducers and actuators, in connection with the group’s robotics business. In the electric vehicle parts sector, the company will enhance profitability by shifting from a product-based business structure to a module- and system-based one, and will strengthen its global customer response capabilities and order pipeline management system to increase the proportion of external customers. In the core robot parts sector, Daedong Gear plans to boost the hardware competitiveness of the group’s robotic products and swiftly carry out 'strategic investments' for early market penetration. Daedong Gear has set targets of reaching 1 trillion won in revenue, a PER of 10 times, a PBR of 1 time, and an ROE of 8% by 2030.

Daedong Metal will expand its business from casting for agricultural machinery, automobiles, and construction equipment to high value-added areas such as core parts for vacuum pumps used in semiconductor processes and precision cast parts for defense and marine engines. At the same time, the company will foster an advanced materials business based on heat-dissipating, flame-retardant, and eco-friendly composite materials, diversifying its portfolio toward high-growth industries such as AI data centers, electric vehicles, and electronic materials. In addition, Daedong Metal plans to strengthen productivity and quality competitiveness through manufacturing AI-based process innovation. The company has set targets to achieve 240 billion won in revenue, a PER of 10 times, a PBR of 2 times, and an ROE of 10% by 2030.

Furthermore, all three listed companies plan to gradually increase their dividend payout ratio to around 20% by 2030 to improve the predictability of their shareholder return policy. Na Youngjung, Executive Vice President for Group Management at Daedong, stated, "This value-up plan is an execution strategy for the group's core subsidiaries to transition toward a recurring revenue structure and profitability-focused system centered on AI and robotics, based on the agricultural physical AI strategy." He added, "We will continuously enhance our corporate value through a virtuous cycle that connects the outcomes generated by strengthening business competitiveness to shareholder returns."

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