DA Technology, 3Q Sales Up 165% YoY... "4Q Orders Expected to Expand"

[Asia Economy Reporter Jang Hyowon] DA Technology recorded triple-digit sales growth in the third quarter, surpassing market consensus.

DA Technology announced on the 12th that its third-quarter sales reached 20.7 billion KRW, a 165.4% increase compared to the same period last year. During the same period, operating losses were significantly reduced from 3.4 billion KRW in the second quarter of this year to 600 million KRW.

This performance improvement is attributed to the expansion of the domestic and international electric vehicle market, which has highlighted the necessity of in-house battery manufacturing, leading to increased orders for battery manufacturing equipment from global automakers. Considering the industry’s tendency for order concentration in the second half of the year, it is expected that domestic and overseas orders will further expand in the fourth quarter.

Furthermore, steep performance growth is anticipated next year. This is because the battery internalization efforts of global electric vehicle companies are becoming visible, leading to expected expansion of overseas orders.

DA Technology recently received a first purchase order (PO) from Rivian. On the 10th (local time), Rivian successfully listed on the U.S. stock market, with both its IPO price and first trading price soaring significantly. On the first trading day, its market capitalization exceeded 100 billion USD, surpassing Ford and General Motors (GM).

Having secured 12 billion USD through its IPO, Rivian is expected to focus on battery internalization. Accordingly, DA Technology expects to receive orders related to pilot lines capable of verifying battery manufacturing processes and materials, as well as notching and stacking equipment for secondary battery assembly processes, starting this month for Rivian.

In addition, following Rivian, DA Technology is expanding its customer base to global automakers in the U.S., China, and other countries, and plans to focus on securing additional orders for the U.S. and China markets.

A company representative explained, “Thanks to a favorable market environment, we achieved steep sales growth in the third quarter, with cumulative sales reaching 36.2 billion KRW as of the third quarter. With Rivian’s successful listing and the expected medium- to long-term benefits for DA Technology, along with an increasing number of global customers, significant order growth is anticipated in the fourth quarter.”

They added, “We will do our best to achieve a turnaround to operating profit in the fourth quarter by ensuring stable sales growth and improving profitability.”