[Click eStock] "Daedong, the Tesla of Agricultural Machinery... Expectations for Achievements in Autonomous Driving and Smart Farm Business"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities announced on the 26th that Daedong is progressing from being the domestic market leader in agricultural machinery manufacturing to smart mobility, and ultimately growing into an agricultural machinery platform company.

Baek Jun-gi, a researcher at NH Investment & Securities, said, "This year, we expect solid North American exports and strong domestic agricultural machinery sales, and in the long term, we anticipate achievements as an autonomous driving and smart farm operator," adding, "Favorable exchange rates and price increases this year are expected to result in solid growth."

Although there was sluggish domestic tractor sales and concerns about North American export profitability in the first quarter, operating profit margins are expected to improve significantly in the second quarter. Second-quarter sales are projected to reach 403.9 billion KRW, a 19.5% increase year-on-year, with operating profit increasing by 71.0% to 40.8 billion KRW, and an operating profit margin exceeding 10%. This is due to strong domestic tractor sales and improved profit margins for North American exports. Although the agricultural machinery sector typically experiences an off-season in the second half, the deficit is expected to narrow even in the fourth quarter this year.

Researcher Baek stated, "The goal of the smoothly progressing smart mobility business is to leap into an agricultural machinery platform," adding, "Daedong plans to enter the smart mobility market by utilizing its subsidiary Daedong Mobility (with a total stake of 66.6%). Currently, sales of around 100 billion KRW are possible from small tractors, chains, and work equipment, and from next year, sales exceeding 200 billion KRW are expected."

He also mentioned, "Starting in 2023, when deliveries of electric two-wheelers to Kakao Mobility begin, the smart mobility segment is expected to start contributing to consolidated sales."

This year's annual sales are projected to increase by 16.4% year-on-year to 1.37 trillion KRW, with operating profit expected to rise by 55.0% to 59.2 billion KRW.

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