Dongyang and Dongyangwoo both reached their upper price limits on the stock market. Analysts attribute the surge to expectations of benefits from the expansion of artificial intelligence (AI) data centers and the construction of the Gadeokdo New Airport.
According to the Korea Exchange, as of 1:52 PM on the 18th, Dongyang was trading at 1,353 won, up 29.97% (312 won) from the previous trading day. Dongyangwoo also rose to its upper limit, increasing by 29.96% (2,460 won) to 10,670 won.
On the same day, Yuanta Securities released a report highlighting the potential for improved performance in Dongyang's ready-mixed concrete business and the expansion of its AI data center operations. Dongyang operates in various sectors, including construction and textiles, with ready-mixed concrete accounting for 60.8% of its revenue in the first half of this year. Of the 17 ready-mixed concrete plants operating nationwide, eight are located in the southeastern region, with four situated in the Busan area.
Yuanta Securities anticipates that the construction of the Gadeokdo New Airport will contribute to Dongyang's performance improvement after 2027. The site preparation for the airport is set to begin in November after selecting qualified contractors for the detailed design, with the main construction expected to start in the first half of next year. Kwon Myung-jun, a researcher at Yuanta Securities, stated, "This will be a driving force for the growth of the company's ready-mixed concrete performance in the coming years."
Expectations surrounding the AI data center business also appear to have boosted stock prices. Since 2022, Dongyang has been preparing for urban AI data center projects in response to the growing demand for AI and data infrastructure. The first project, the 'Bucheon Samjeong AI Hub Center,' is a specialized AI data center with a total power capacity of 9.8 megawatts (MW) and an IT capacity of 7.0 MW, which broke ground in May. It is scheduled for completion in October 2028, with operations expected to begin in November of the same year.
Yuanta Securities projects that the center's completion will generate over 50 billion won in profits through its sale. In addition to the Bucheon Samjeong project, Dongyang is also considering three additional sites, including one in Incheon’s Guwol-dong, indicating potential for growth in its data center business.
* This article has been translated by AI.
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