Agricultural machinery manufacturer Daedong is experiencing a strong upward trend in its stock prices. The company is expanding its business from traditional power transmission components for agricultural machinery to include electric vehicle and robot components, reflecting growing expectations for its agricultural robot business.
As of 10:18 a.m. on November 4, Daedong's shares rose by 870 won (13.30%) to 7,410 won compared to the previous trading day. Its affiliate, Daedong Gear, also saw a significant increase, trading at 6,510 won, up 1,280 won (24.47%).
The surge in Daedong's stock price is attributed to heightened expectations for the expansion of its agricultural robot business. The previous day, a meeting titled 'Saemangeum Robot Farm Factory Promotion' was held at the National Assembly, where both Hyundai Motor Group and Daedong participated. Discussions focused on developing robots specialized for agriculture and accumulating operational data from actual farms to facilitate commercialization.
Specifically, plans are being considered to invest a total of 300 billion won in a 21-hectare site in the Saemangeum area of Gimje, North Jeolla Province. The funding strategy includes 180 billion won from the national budget, 60 billion won from local governments, and 60 billion won from private capital, aimed for the period between 2027 and 2031. Jeong Joo-young, an executive at Daedong Group, presented the business direction under the theme 'Agriculture Built by Robots, Robot Farm Factory.'
Analysts in the securities industry view the potential for Daedong Group's robot business expansion positively. Independent research firm Value Finder assessed that Daedong Gear is expanding its electrification component business based on a backlog of orders worth approximately 1.9 trillion won, while developing actuators for robots to secure new growth engines.
Researcher Ji-hoo noted, "As the backlog of orders for drive components for EV and HEV vehicles expands, the transition of the product portfolio to electrification is ongoing. The contribution of the electrification sector to revenue is expected to gradually increase with the expansion of mass production of new order items."
As of 10:18 a.m. on November 4, Daedong's shares rose by 870 won (13.30%) to 7,410 won compared to the previous trading day. Its affiliate, Daedong Gear, also saw a significant increase, trading at 6,510 won, up 1,280 won (24.47%).
The surge in Daedong's stock price is attributed to heightened expectations for the expansion of its agricultural robot business. The previous day, a meeting titled 'Saemangeum Robot Farm Factory Promotion' was held at the National Assembly, where both Hyundai Motor Group and Daedong participated. Discussions focused on developing robots specialized for agriculture and accumulating operational data from actual farms to facilitate commercialization.
Specifically, plans are being considered to invest a total of 300 billion won in a 21-hectare site in the Saemangeum area of Gimje, North Jeolla Province. The funding strategy includes 180 billion won from the national budget, 60 billion won from local governments, and 60 billion won from private capital, aimed for the period between 2027 and 2031. Jeong Joo-young, an executive at Daedong Group, presented the business direction under the theme 'Agriculture Built by Robots, Robot Farm Factory.'
Analysts in the securities industry view the potential for Daedong Group's robot business expansion positively. Independent research firm Value Finder assessed that Daedong Gear is expanding its electrification component business based on a backlog of orders worth approximately 1.9 trillion won, while developing actuators for robots to secure new growth engines.
Researcher Ji-hoo noted, "As the backlog of orders for drive components for EV and HEV vehicles expands, the transition of the product portfolio to electrification is ongoing. The contribution of the electrification sector to revenue is expected to gradually increase with the expansion of mass production of new order items."
* This article has been translated by AI.
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