Yuanta Securities analyzed on the 2nd that Daedong needs to be re-evaluated as an 'On-Device AI' related stock due to its development of autonomous driving, operational, and precision agriculture technologies.
Researcher Son Hyun-jung of Yuanta Securities explained, "In 2020, Daedong signed a business agreement with Intel to develop edge computing-based precision agriculture technology and autonomous driving products," adding, "In October last year, they launched a Level 3 autonomous driving tractor."
He continued, "They are currently developing cloud AI and edge computing technologies to be applied to Level 4 fully autonomous tractors," and added, "They are expanding their portfolio to include special environment mission robots for non-agricultural use, robotic mowers, and autonomous transport robots."
He analyzed, "In December last year, Daedong confirmed the growth potential of its robotics business by signing a supply contract for special environment mission robots with POSCO," and "From this year, the release of special environment mission robots and robotic mowers is expected."
Daedong is estimated to record sales of 1,777.3 billion KRW and an operating profit of 128.8 billion KRW this year. These figures represent increases of 20.6% and 34.0% respectively compared to last year.
Researcher Son stated, "The current stock price is based on a price-earnings ratio (PER) of 7.1 times for this year's expected performance," and explained, "This year, a full-scale stock price re-evaluation as a robotics stock is expected to take place."
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