[Click eStock] "Daechang Solution, Turns Profitable in Q2... Hydrogen Business Accelerates"

KB Securities analyzed on the 14th that Daechang Solution is proving its fundamentals through its performance and that its hydrogen business is also being launched in earnest, making it a company to watch.

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. Currently, it is diversifying its product portfolio to include nuclear waste containers, offshore wind structures, and gas transfer systems (hydrogen transport tank business). In the second quarter of this year, sales reached 17 billion KRW and operating profit was 2.2 billion KRW, representing increases of 46% and a turnaround to profit compared to the same period last year, respectively.

Han Jeyoon, a researcher at KB Securities, stated in a report on the same day, “Having succeeded in turning a profit for two consecutive quarters, the visibility of an annual turnaround has increased further,” and added, “Although sales may be considered sluggish compared to the first quarter, this was largely due to some of the second-quarter sales of the subsidiary Cryos being deferred to the third quarter, so the overall annual strong performance trend is expected to remain unchanged.”

Han also analyzed, “On the contrary, the operating profit margin increased compared to the first quarter, which is attributed to an improved product mix, indicating that the fundamentals of the core business continue to improve.”

Additionally, the researcher explained, “At H2 MEET, the world’s first hydrogen industry specialized exhibition scheduled for September 13-15, the subsidiary Cryos’s liquefied hydrogen tank trailer will be unveiled,” and noted, “Currently, liquefied hydrogen transport tanks are evaluated as essential technology for hydrogen commercialization, but only two to three global companies possess this technology.”

He added, “Cryos has secured liquefied hydrogen tank manufacturing technology through national projects, and it is highly significant that the first domestic product will be showcased at this exhibition,” and judged, “The market size for liquefied hydrogen tank trailers in South Korea is expected to form at least a trillion KRW scale, and through this exhibition, Cryos is poised to become the market leader in this trillion KRW-scale market, making it a company that must be closely watched.”