[Click eStock] "Daesung Fine Tec: Three Growth Engines in Auto Parts, Renewable Solar, and K-Theme Parks"

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On September 24, ValueFinder analyzed that Daesung Fine Tec has diversified its business structure into an IP-based theme park operator through the merger with Monolith, building on its existing automotive parts and renewable energy businesses. In particular, the company is expected to see its mid- to long-term growth momentum expand, driven by the K-culture boom, a surge in foreign tourists, and the construction of the 9.81 Park near Incheon International Airport.

Daesung Fine Tec, established in 1988 and listed on KOSDAQ in 2009, is a manufacturer of automotive parts and molds. Through its headquarters and production base in Changwon, Gyeongnam, the company supplies automotive parts using the Fine Blank process to Tier 1 automotive vendors, maintaining a stable business foundation. In its renewable energy division, Daesung Fine Tec designs, constructs, and maintains solar power systems, and produces and sells solar water heaters and electric boilers. Although the industry had been sluggish for a period due to the spread of low-priced Chinese products and policy variables, the company's prospects for renewed growth are considered high, given the current administration's emphasis on strengthening renewable energy.

Monolith, which was absorbed through a merger in August, is a company specializing in IP-based leisure content, with in-house capabilities spanning planning, design, hardware and software development, and operational systems. It currently operates '9.81 Park Jeju' and plans to complete '9.81 Park Incheon Airport' near Incheon International Airport by the end of 2026. The park is differentiated as a digital theme park, offering racing attractions integrated with software, as well as record, video, and battle systems.

Lee Chungheon, a researcher at ValueFinder, stated, "Daesung Fine Tec secures approximately 20 billion won in revenue from design and facility supply during the theme park development phase, and has established a franchise model that collects 12% of operating revenue as royalties and IT fees during the operational phase. Currently, the Jeju and Incheon locations are operated directly through subsidiaries, while exclusive business rights are granted in the remaining six regions, enabling the company to generate both facility sales and royalty income simultaneously."

He added, "The spread of K-culture and the increase in foreign tourists visiting Korea are positive factors for expanding demand for the company's theme parks. With the rising number of visitors to Jeju, F&B and store sales are showing double-digit growth this year, and 9.81 Park Incheon Airport is also expected to benefit from an annual 80 million users and an estimated 3.78 million transfer passengers with layovers of four hours or more by 2029, which will support future park performance."

ValueFinder estimates that annual revenue for 9.81 Park Incheon Airport will exceed 50 billion won, with the total project cost of 120 billion won to be financed through merger synergies, convertible bond issuance, and PF loans. Researcher Lee assessed, "With a stable foundation in its core automotive parts and renewable energy businesses, and a new growth engine in IP-based theme parks, Daesung Fine Tec is poised to pursue diversification of its business portfolio, external growth, and improved profitability simultaneously."

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