[Special Stock] Daeyang Electric Industrial Surges Over 8% on Strong Q1 Results

The stock price of Daeyang Electric Industrial, which posted strong results in the first quarter of this year, is showing strength.

As of 9:39 a.m. on May 16, Daeyang Electric Industrial was trading at 21,000 won, up 1,630 won (8.42%) from the previous trading day.

In the first quarter of this year, Daeyang Electric Industrial recorded sales of 55.6 billion won and operating profit of 5.7 billion won. These figures represent increases of 34.4% and 140.2%, respectively, compared to the same period last year. The operating margin reached 10.3%, marking the highest first-quarter margin since 2017.

On this day, IBK Investment & Securities raised its target price for Daeyang Electric Industrial from 29,000 won to 33,000 won, stating that the company "achieved meaningful and strong results in the first quarter." Lee Geonjae, a researcher at IBK Investment & Securities, explained, "The increase in sales from the defense and sensor business divisions was particularly notable." He added, "The defense business division recorded 20.7 billion won, up 79.4% year-on-year, while the sensor and other business divisions posted 14.1 billion won, a 71.5% increase from the same period last year."

LS Securities also raised its target price by 2,000 won to 25,000 won. Jeong Hongsik, a researcher at LS Securities, commented, "The defense business appears to be recognizing revenue from past orders, and in particular, a number of highly profitable projects were carried out in the first quarter, which seems to have significantly improved the operating margin." He added, "The automotive sensor business is showing structural growth, as sensors for global electric vehicle ESCs (Electronic Stability Control) are being adopted by client companies, with expanded deployment at overseas plants and new supplies to local companies in China."