"Dongyang Expected to Benefit from AI Data Center and Gadeokdo New Airport"

Yuanta Securities stated on September 18 that Dongyang is expected to see improved performance thanks to expanding demand for ready-mixed concrete driven by its artificial intelligence (AI) data center business and the construction of the new Gadeokdo Airport.

Myoungjun Kwon, a research analyst at Yuanta Securities, said in a report released that day, "The Bucheon Samjeong AI Hub Center, which Dongyang began constructing last May, is an AI-specialized data center with a total substation capacity of 9.8 megawatts (MW) and IT equipment power capacity of 7.0MW," adding, "It offers a favorable location for meeting AI demand as it is easily connected to data centers in Incheon and the southwestern region of Seoul." He further noted, "Despite the restricted power supply in the Seoul metropolitan area, Dongyang has secured a location capable of providing the necessary electricity for data center operations."

The Bucheon Samjeong AI Hub Center is situated in a general industrial zone, resulting in relatively low sensitivity to complaints, noise, vibration, and electromagnetic waves, and it is also equipped with water supply and telecommunications infrastructure. In addition, with network facilities of the three major telecommunications companies located nearby, it is possible to establish a carrier-neutral data center. Analyst Kwon predicted that Dongyang is also reviewing three additional sites, including Incheon Guwol-dong, beyond Bucheon Samjeong, which could lead to further growth in performance and continuity of the data center business.

The ready-mixed concrete business was also identified as a factor in performance improvement due to increased demand from the construction of Gadeokdo New Airport. As of the first half of this year, revenue from Dongyang's ready-mixed concrete business accounted for 60.8% of total sales, and the company operates eight out of its 17 ready-mixed concrete plants nationwide in the Gyeongsang region. Notably, four of these plants are located in the Busan area. Ready-mixed concrete is difficult to transport over long distances, making local production bases crucial; thus, the development of Gadeokdo New Airport is expected to contribute to Dongyang's ready-mixed concrete performance improvements after 2027. The company also operates three aggregate sites in the Busan area.

Kwon stated, "The site preparation work for Gadeokdo New Airport is scheduled to commence with priority construction in November this year, with main construction beginning in the first half of 2027. This is expected to drive the growth of Dongyang's ready-mixed concrete performance over the next several years." He added, "Since the price of ready-mixed concrete in the Seoul metropolitan area increased by 4.3% year-on-year as of last April, the price hike is anticipated to be reflected from the second half, thereby improving profitability as well."

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