1. What is DAEMO?
DAEMO is a specialized manufacturer of construction equipment parts, producing various products such as hydraulic breakers and quick couplers. Their recent H1 2025 report showcased remarkable growth, capturing the attention of investors.
2. H1 2025 Performance: What are the Key Highlights?
DAEMO’s consolidated revenue for H1 2025 reached 22.247 billion KRW, a 3.8% increase year-on-year. Operating profit soared by an astounding 1424.1% to 2.517 billion KRW, while net profit also saw remarkable growth of 943.7% to 1.757 billion KRW. This is a result of continuous efforts in cost management, raw material price stabilization, and increased production efficiency.
3. Reasons Behind the Positive Performance
- ✅ Weak KRW: The rise in the KRW/USD exchange rate benefited DAEMO as an exporting company.
- ✅ Solid Financial Structure: Debt reduction and capital increase strengthened financial soundness.
- ✅ Securing New Growth Engines: DAEMO continues to invest in future growth through online sales channel expansion, new item development, and patent applications.
4. Investment Considerations
- ⚠️ Potential Global Economic Slowdown: A slowdown in the construction industry could negatively impact DAEMO’s performance.
- ⚠️ Exchange Rate Volatility: Fluctuations in the exchange rate can amplify earnings volatility.
- ⚠️ Raw Material Price Volatility: Rising raw material prices could worsen profitability.
5. Investment Strategies
While DAEMO is showing a positive performance trend, managing risks associated with external environment changes is crucial. Considering both short-term stock price momentum and long-term growth potential, a dollar-cost averaging strategy is recommended. It’s important to continuously monitor macroeconomic indicators and market conditions when making investment decisions.