[Asia Economy Reporter Hyunseok Yoo] KB Securities announced on the 14th that DK Lock is expected to complete the development of ultra-high-pressure valves for hydrogen refueling in the second half of the year. No investment opinion or target price was provided.
Researcher Sang-guk Lim of KB Securities stated, "The localization of 700bar-class ultra-high-pressure valves, a core component for hydrogen refueling stations, is underway, and development completion is expected in the second half of the year," adding, "The lineup of eco-friendly new growth products such as hydrogen electric vehicles, hydrogen refueling stations, LNG-powered ships, and bunkering equipment is attractive."
He explained, "Supplying fittings and valves for semiconductor production facilities is also a growth momentum. Sales are increasing as a vendor for companies S and H," and added, "Sales are expected to increase by more than 60% from 4.3 billion KRW in 2019 to 2020."
DK Lock recorded sales of 17.6 billion KRW and operating profit of 1.4 billion KRW in the first quarter. Compared to the same period last year, sales increased by 5.8%, but operating profit decreased by 35.5%. He emphasized, "Despite COVID-19, sales performed well due to customer diversification and recovery of business conditions in the Middle East and India regions," and added, "However, a decrease in sales from the US and Russia subsidiaries, which have high profitability, led to a decline in operating profit. Significant performance improvement is expected in the second quarter compared to the first quarter."
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