As of 9:04 a.m. on July 17, shares of Dayang Electric Industries were trading at 25,400 won, up 7.17% (1,700 won) from the previous day. During intraday trading, the stock jumped to 25,500 won, setting a new 52-week high.
Investor sentiment appears to have been boosted by analysis suggesting that Dayang Electric Industries' sales of ESC (Electronic Stability Control) sensors for automobiles are expected to show strong growth. ESC is a system that controls vehicle stability and braking power. It measures pressure to control the braking force of the wheels when steering becomes impossible.
Jung Hongsik, a researcher at LS Securities, stated, "ESC sensors for global electric vehicles of our client M are being applied, supply to finished vehicle manufacturers is expanding, and new supply to local Chinese companies is underway." He added, "Expansion to global clients, including two to three local Chinese companies, is highly likely, so the growth momentum is expected to continue from a mid- to long-term perspective."
Jung estimated Dayang Electric Industries' sales in the second quarter at 55.8 billion won (up 11.7% year-on-year) and operating profit at 5.1 billion won (up 66.8%), raising the target price from 25,000 won to 30,000 won.
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