"Daesung Hi-Tech Expected to Improve Performance on Rising Orders in Defense, Robotics, and Data Centers"

On September 28, Yuanta Securities stated that Daesung Hi-Tech is expected to see revenue growth and improved profitability due to increasing orders. The company did not provide an investment opinion or set a target price.

Kwon Myungjoon, a research analyst at Yuanta Securities, said, "Additional orders in the defense sector are anticipated within this year for Daesung Hi-Tech," and added, "Following the 2025 supply contract for aircraft-guided weapon system components, the probability of additional year-end orders for new projects is increasing."

He also said, "The company has established a plant in Romania to respond to clients and has been engaging in production and sales since March." He continued, "As it counts global comprehensive defense firms among its clients, scaling up production in Romania is expected to lead to an increase in order backlog and improved profitability."

Daesung Hi-Tech is also working on a robotics project, supplying precision parts for Twini’s autonomous mobile robots (AMR). Kwon noted, "It appears Daesung Hi-Tech has also secured orders from Company I, which previously supplied AMRs to Company S."

Additionally, following its equity investment in Tesolo, a company specializing in robotic hands and grippers, Daesung Hi-Tech is supplying components, jigs, and various equipment required for manufacturing robotic hands.

Kwon explained, "Orders for Swiss-turn automatic lathes used for precision processing components in data centers have continued, and both the headquarters and the Vietnam subsidiary are directly manufacturing and selling parts related to universal quick disconnectors (UQD)." He added, "There is a penalty clause in case of leaks in immersion cooling racks, so products with high reliability in terms of product stability are preferred, and since both equipment and products are being supplied simultaneously, the company's technological competitiveness has been demonstrated."

He continued, "Next year, the company plans to launch a contract development and manufacturing (CDMO) business, localizing catheter products and producing them in a fully automated process at an AI medical manufacturing center." He added, "After completing the production line this year, the company expects to see its first revenue from this initiative early next year."

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