[Asia Economy Reporter Hyungsoo Park] DY Power is showing strong performance. The news that Dmytro Senik, Ukraine's Deputy Foreign Minister, will visit Korea from the 6th to the 8th has caused reconstruction-related stocks to surge, reflecting its impact. It is reported that a delegation led by Lee Jun-seok, leader of the People Power Party, along with affiliated lawmakers, will visit Ukraine. There is also speculation that they may meet with Volodymyr Zelensky, President of Ukraine, during the visit.
As of 12:46 PM on the 3rd, DY Power is trading at 15,750 KRW, up 5.0% from the previous day.
Seoak Machinery Industry, Hyundai Construction Equipment, and Hyein are also surging.
Researcher Donghyun Lee of Research Al-eum explained, "At the recent Davos Forum, the Ukrainian Deputy Prime Minister requested Korea's active participation in post-war Ukraine reconstruction projects," adding, "The estimated cost is approximately 632 trillion KRW."
He continued, "Since China's infrastructure investment is also expected to become visible, DY Power, which manufactures construction heavy equipment hydraulic cylinders, is expected to benefit."
DY Power is a company that manufactures hydraulic cylinders for construction heavy equipment. It was established in 1978 and listed on the KOSPI market in 2015. A hydraulic cylinder is a device that fills oil inside a cylinder and moves a piston back and forth in a straight line by hydraulic pressure, acting like the muscles of heavy equipment, transport machinery, and machine tools.
DY Power mainly supplies to manufacturers of excavators, aerial work platforms, forklifts, and loaders. It supplies local companies in various countries including China, the United States, Japan, and India. Research Al-eum estimated that major customers include Hyundai Doosan Infracore (about 30% of sales), Terex (20%), Hyundai Construction Equipment (15%), Hitachi (15%), Kobelco (15%), and Volvo (5%).
In response to a question on CBS Radio asking, "You are soon departing for Ukraine; has there been coordination with the government?" Lee replied, "Ukraine is currently a travel-restricted area, so you cannot go without government permission." Earlier, the People Power Party announced on the 30th of last month through a press release that a 'Korea-Ukraine Freedom and Peace Solidarity Special Delegation' led by Lee would visit Ukraine in early June.
Earlier, Ministry of Foreign Affairs spokesperson Choi Young-sang stated at a briefing the previous day, "Dmytro Senik, Ukraine's Deputy Foreign Minister, is scheduled to meet with Lee Do-hoon, Second Vice Foreign Minister, on the morning of the 7th." He added, "The two vice ministers will exchange views on the situation in Ukraine and discuss cooperation measures between the two countries in areas such as trade, investment, and development cooperation."
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