[Click eStock] "DK Lock Expected to Benefit from Ukraine Reconstruction"

Daishin Securities analyzed on the 22nd that DK Lock has good performance and is expected to benefit from the reconstruction of Ukraine.

Park Jang-wook, a researcher at Daishin Securities, stated in a report on the same day, “As energy-related investments continue, DK Lock is expected to achieve this year's performance forecast of 130.4 billion KRW in sales and 19 billion KRW in operating profit,” adding, “It is a time to consider additional profit increases from investments in the upstream and midstream sectors in key export regions such as North America and Europe.”

In the first quarter of this year, DK Lock recorded sales of 27.6 billion KRW and operating profit of 4.4 billion KRW. Sales fell short of Daishin Securities’ estimates, while operating profit met the estimates. Daishin Securities expects that overall this year, as investments in the oil and gas sectors continue, profitability will improve due to factors such as exchange rate effects, and forward industry investments will continue, meeting the performance forecast.

Researcher Park analyzed, “When 1,000 diesel vehicles are converted to NGV, sales of about 1 billion KRW occur,” and “With 7.1 million diesel vehicles registered in the United States, the forward market attractiveness is high, and sequential sales growth toward NGV is expected.”

He added, “DK Lock secured an order worth about 10 billion KRW in Uzbekistan last January, and since it has a sales network in the surrounding region, there is a possibility of benefiting from the reconstruction of Ukraine.”