[Click e-Stock]"Daedong Gear, Backed by KRW 1.9 Trillion in Orders, Adds Robot Actuators... Accelerates Electrification Shift"

Daedong Gear, which produces transmissions for agricultural machinery and automotive powertrain components, is expanding its business into electrification components and robot actuators. With an order backlog of about KRW 1.9 trillion expected to drive growth in electrification component sales, the company plans to develop its robot components business into a mid- to long-term growth engine.

Founded in 1973, Daedong Gear is a powertrain manufacturer that was listed on the KOSDAQ market in 1991. It produces powertrain components for automobiles and industrial machinery, as well as transmissions for agricultural machinery. In the first half of 2026, agricultural machinery accounted for 49.2% of revenue, automotive products for 43.5%, and industrial products for 7.3%. During the same period, the company recorded revenue of KRW 126.4 billion and operating profit of KRW 200 million.

Ji Hu, a researcher at Value Finder, highlighted the growth in orders for Daedong Gear's electrification components. The order backlog is estimated at about KRW 1.9 trillion as of the end of the third quarter of 2026, with electrification-related products, including drive components for electric vehicles (EVs) and hybrid electric vehicles (HEVs), expected to account for about 80% of the total.

Construction of new production lines for electrification components is about 80% complete. Once customer quality approvals are secured and mass production expands, electrification components are expected to make a gradually larger contribution to revenue. Although third-quarter results may decline slightly from the previous quarter due to adjustments to production schedules by major customers, the company is improving its product mix as production of newly won orders stabilizes and the share of products for electric vehicles increases.

The robot actuator business is also seen as a new growth driver. Daedong Gear has been jointly developing robot actuators with Daedong Robotics and Chinese robotics company EYOU since early 2026. On October 27, the companies signed a business agreement, broadening their cooperation to include product manufacturing and applications in agricultural robots.

The company aims to launch its first-generation actuator lineup in the first half of 2027. It plans to establish a joint venture with EYOU in China and begin pilot production by January 2027, before starting full-scale mass production at its domestic facility in 2029. It is also working on a plan to apply the jointly developed actuators to agricultural humanoid robots developed by Daedong Robotics and verify their performance.

Researcher Ji said Daedong Gear is laying the groundwork for improved results by expanding mass production of electrification components while securing a mid- to long-term growth engine through its robot actuator business. In particular, he expects cooperation with the group's robotics business to broaden the actuators' applications and create business synergies.

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