[Asia Economy Reporter Jang Hyowon] KB Securities analyzed on the 31st that DK Lock is expected to achieve remarkable performance in 2023 as supply contracts with major clients continue, and growth is anticipated in the hydrogen industry and aerospace industry.
DK Lock is a manufacturer of fittings and valves for measuring equipment. It produces key components installed in industrial facility piping for petrochemicals, CNG·LNG, semiconductors, hydrogen industry, and aviation. In the first half of this year, it recorded sales of 49.9 billion KRW and operating profit of 3.4 billion KRW, marking increases of 17.1% and 7.2% respectively compared to the same period last year.
Researcher Lim Sang-guk of KB Securities stated in a report on the same day, “Despite the economic slowdown, favorable performance was recorded due to customer diversification and product mix improvement,” and added, “In the second half, continuous growth in the North American market, securing major clients, and exchange rate increases are expected to drive consecutive quarterly record-high performances, with remarkable results anticipated in 2023.”
DK Lock is expected to continue securing major clients and supply contracts amid ongoing growth in related industries such as energy business structure changes, eco-friendliness, and de-Russiafication in North America, Europe, and the Middle East. This is expected to lead to increased performance.
Additionally, the corrosion-resistant fitting component developed in-house, the non-oxidizing back ferrule, has great growth potential. As the top compatible fitting supplier domestically for the global major company S, it is on a growth trajectory by responding quickly to client demands for fast delivery.
Researcher Lim explained, “The supply of high-profit semiconductor production facility fittings is also positive,” adding, “Sales are increasing as a vendor for SK Hynix, and registration and supply as a partner for Samsung Electronics, Lam Research, and others are underway.”
Furthermore, he analyzed, “The green economy product lineup, including hydrogen electric vehicles and charging stations, LNG bunkering equipment, is attractive,” noting, “Currently, eight types of fuel piping-related parts are supplied to the hydrogen vehicle ‘Nexo,’ and fittings for hydrogen fuel cells are supplied to Doosan Fuel Cell and others.”
He also explained, “Benefits from localization of fittings for defense (aviation) and aerospace hydraulic systems are expected,” stating, “As the only domestic supplier of fittings for aircraft hydraulic systems, it has supplied to the KF-21 prototype and is pursuing vendor registration and supply with Hanwha Aerospace.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
