DAEATI Delivers Q2 Earnings Surprise

DAEATI reported impressive results for Q2 2025, with revenue of KRW 38.7 billion, operating profit of KRW 3.2 billion, and net income of KRW 5.6 billion, significantly exceeding market expectations. Notably, both operating and net profit margins showed substantial improvement year-over-year.

Driving Forces Behind the Surge

The key drivers behind this earnings surprise are efficient business operations and the successful implementation of a profitability-focused strategy. Although revenue slightly decreased compared to Q4 2024, operating margin increased from 4.55% to 8.27%, and net profit margin rose from 9.43% to 14.47%.

  • Government policies supporting railway infrastructure investment, such as the ‘4th National Railway Network Construction Plan’ and the GTX project expansion, have positively impacted DAEATI’s performance.
  • SIL4 certification and expansion into overseas markets have strengthened the company’s technological competitiveness and laid the groundwork for new market penetration.
  • Corrections to the business report provided transparency regarding the GTX-C project’s construction delay, reassuring investors about the stable progress of other projects.

What Does the Future Hold for DAEATI?

DAEATI is expected to continue its steady growth, benefiting from the favorable environment of increasing government investment in railway infrastructure. However, caution is advised regarding potential risks such as short-term liquidity and exchange rate fluctuations. Monitoring the progress of the GTX-C project remains crucial.

Action Plan for Investors

  • Buy: The current stock price presents an attractive investment opportunity.
  • Risk Management: Monitor short-term liquidity issues and exchange rate volatility while adjusting investment proportions accordingly.
  • Further Observation: Continuously monitor the progress of the GTX-C project and new order trends.