Daedong disclosed a value-up plan on Tuesday to raise sales to 3.59 trillion won ($2.5 billion) by 2030, based on "agricultural physical artificial intelligence (AI)."
Daedong is pushing to transform itself from an agricultural machinery manufacturer into an agricultural physical AI company. Centered on AI-based autonomous farming equipment and agricultural robots, the company plans to build a "subscription-based AI agricultural service" model that collects and learns from agricultural data and continuously upgrades equipment functionality and performance through wireless software updates.
Daedong aims to achieve consolidated sales of 3.59 trillion won, a price-to-earnings ratio (PER) of 10, a price-to-book ratio (PBR) of 2, and return on equity (ROE) of 20% by 2030. The company plans to focus on building the subscription-based AI agricultural service model and expanding it into global markets. In North America and Europe, its key overseas markets, Daedong plans to secure more than 1,000 and 700 dealer networks, respectively, by 2030, lifting its share to 25.9% by that year.
Daedong Gear set targets of 1 trillion won in sales, a PER of 10, a PBR of 1, and an ROE of 8% by 2030. In the electric vehicle parts business, the company will strengthen profitability by upgrading its existing single-product-focused business structure to one centered on modules and systems. In the core robot components business, it also plans to make strategic investments to enhance the competitiveness of the group's robot products and accelerate their market entry.
Daedong Metal will expand its business scope from the existing casting business centered on agricultural machinery, automobiles, and construction equipment into high-value-added areas such as core components for semiconductor-process vacuum pumps and high-precision casting parts for defense and marine engines. At the same time, it will foster an advanced materials business based on heat-dissipating, flame-retardant, and eco-friendly composite materials, diversifying its portfolio around high-growth industries such as AI data centers, electric vehicles, and electrical and electronic materials.
To enhance the predictability of its shareholder return policy, the company decided to gradually expand its dividend payout ratio to around 20% by 2030. Having maintained a long-standing record of continuous dividends, Daedong plans to clearly present a mid- to long-term dividend policy to boost investor confidence.
"This value-up plan is an execution strategy for the group's core affiliates to transition to an AI- and robotics-centered recurring revenue business structure and a profitability-focused system, based on the agricultural physical AI strategy," said Na Young-jung, vice president of group management at Daedong. "We will continuously enhance corporate value through a virtuous cycle that links the results generated by strengthened business competitiveness to shareholder returns."
