[Click eStock] "Daechang Solution Proves Fundamentals with Q1 Turn to Profitability"

On the 7th, KB Securities analyzed that Daechang Solution proved a complete improvement in fundamentals with a turnaround in its performance in the first quarter of this year, and is expected to stand out in future businesses such as nuclear power plant waste container business and renewable energy sectors.

Daechang Solution is a company specializing in the manufacture of structures (MBS) installed in ship engines and produces cast steel products used in various industries. To improve the performance volatility largely affected by the shipbuilding industry, the company has been striving to diversify its products since 2010. As a result, it is currently diversifying its product portfolio to include nuclear power plant waste containers, offshore wind power structures, and gas transportation systems.

Jaeyoon Han, a researcher at KB Securities, stated, “We focus on the fundamental improvement underway along with Daechang Solution’s performance turnaround,” adding, “Daechang Solution proved fundamental improvement by breaking continuous losses and turning to profit with an operating profit of 2.2 billion KRW in the first quarter of this year through product diversification in nuclear power, wind power, and hydrogen.”

Han explained, “A notable business is the nuclear power plant waste container business,” and described it as “a product that solves the problems of existing concrete containers by reducing the thickness of the walls to increase space utilization while securing radiation shielding performance.”

He continued, “The potential market size is estimated to be over 400 billion KRW annually, and it is currently a market with no significant competitors,” and analyzed, “Daechang Solution’s market preemption and consequent stable growth are noteworthy, given that it has secured the only global reference, such as delivery to the Bruce Power Plant in Canada.”

Additionally, he emphasized, “Offshore wind power structures are showing growth due to the transition to renewable energy, and through new products, the company plans to enter a market estimated at 500 billion KRW annually,” and added, “The gas transportation system of its subsidiary, Cryos, is also beginning substantial sales growth, and the core business, the ‘liquefied hydrogen transportation system,’ has inherent potential for global market preemption, indicating the possibility of explosive growth.”