1. DY Power’s H1 2025 Performance: What Happened?
DY Power recorded sales of KRW 206.6 billion, operating profit of KRW 17.6 billion, and net income of KRW 13.3 billion in H1 2025. While Q2 preliminary results significantly exceeded expectations (KRW 0), sales, operating profit, and net income all decreased compared to the same period last year.
2. Analyzing the Drivers of Change: Why These Results?
The global economic slowdown and volatility in construction equipment demand are analyzed as the main causes of the decline. With a high export ratio (80.4%), DY Power is particularly sensitive to fluctuations in overseas markets. Furthermore, the operating rate of 112.1%, while efficient, can become a burden if sustained.
3. Positive and Negative Factors: Opportunities and Threats?
- Positive Factors: Stable customer base (HD Hyundai Infracore, HD Hyundai Construction Equipment, Doosan Bobcat, etc.), global production bases, continuous R&D investment, healthy debt ratio (23.1%).
- Negative Factors: Deterioration of operating cash flow (KRW -586.1 billion), exposure to exchange rate fluctuations due to high export ratio, increasing borrowing costs due to global interest rate hikes, uncertainty surrounding US tariffs.
4. Action Plan for Investors: What Should You Do?
Investors considering DY Power should pay close attention to the following: the timing and strength of the global construction market recovery, improvement in operating cash flow, development of new markets and products, and strengthening technological competitiveness. Careful monitoring of these factors is crucial before making investment decisions. Currently, a ‘neutral’ stance is maintained, and it is necessary to monitor future business environment changes and the company’s response strategies.