Daeyang Metal Sees 385% Surge in Q1 Operating Profit, Returns to the Black

Stainless steel processing company Daeyang Metal has successfully improved its profitability in the first quarter of this year, marking a full-scale recovery in performance. With cost reduction and customer base expansion strategies yielding results, both operating profit and net profit saw significant increases.

According to the first quarter report disclosed on May 11, Daeyang Metal recorded sales of 55.1 billion won, maintaining a level similar to that of the same period last year. In contrast, operating profit surged by 385% year-on-year to 1.066 billion won, and net profit also increased by 146% to 856 million won, successfully turning the company into the black.

The company cited cost-saving efforts and a strategy to secure new clients as the key factors behind the improved performance. While maintaining stable transactions with existing overseas customers, Daeyang Metal expanded its export markets to Southeast Asia, North America, and Europe, and also achieved results by targeting the ultra-thin, high-value-added product market. In particular, securing sales stability based on relationships with major domestic and global home appliance manufacturers also had a positive impact.

In 2024, Daeyang Metal faced prolonged difficulties in normalizing management while responding to KH Group's hostile merger and acquisition (M&A) attempt. The company concentrated on legal responses and management rights disputes for about a year, which effectively resulted in a management vacuum. As a result, both operating profit and net profit were in the red in the first quarter of last year.

A company official stated, "Legal advisory fees and costs related to the temporary general shareholders' meeting incurred in the process of responding to the management rights dispute with KH Group were also reflected in this year's first quarter results," adding, "If these one-off costs were excluded, operating profit would have been around 2.4 billion won."

Daeyang Metal plans to invest in new businesses in order to continue the trend of performance improvement. The company intends to expand into fields that can create synergy with its steel processing business to secure new growth engines. To this end, it is also pursuing capital raising via a small public offering, with the subscription date scheduled for May 13 and payment date set for May 15.

Daeyang Metal is further strengthening its performance improvement trend by combining profitability recovery based on cost reduction and market diversification with investments in new businesses.

This content was produced with the assistance of AI translation services.