1. Daedong’s Q2 Results: What Happened?

Daedong recorded sales of KRW 414.5 billion, operating profit of KRW 25 billion, and net income of KRW 6.8 billion in Q2 2025. Sales increased year-over-year, while operating profit slightly decreased. Importantly, net income turned positive.

2. Analyzing the Drivers: Why These Results?

Positive Factors:

  • ► Robust demand in the agricultural machinery market and export growth
  • ► Expectations from investments in future agricultural technologies (robots, autonomous driving)
  • ► Decrease in non-operating expenses and corporate tax expenses

Negative Factors:

  • ► Cost burden due to rising raw material prices and exchange rate volatility
  • ► High debt-to-equity ratio (132.48%)
  • ► Geopolitical risks such as the possibility of US reciprocal tariffs

3. Investment Strategy: What Should You Do?

While Daedong’s return to profit is positive, the high debt-to-equity ratio and external uncertainties should be considered. The current investment opinion is ‘Neutral’. It is advisable to make investment decisions after closely monitoring future new business performance, financial structure improvement, and exchange rate fluctuations.

4. Investor Action Plan: What to Watch?

  • ► Check the specific revenue contribution and growth of new business segments
  • ► Monitor the trend of decreasing debt-to-equity ratio
  • ► Review strategies to respond to exchange rate fluctuations and raw material price changes