We will move beyond the existing farm machinery-centered business structure and grow by expanding our AI farming operations platform and robotics and advanced materials businesses.
Daedong, Daedong Gear, and Daedong Metals, the three listed companies of the Daedong Group, on the 7th outlined a mid- to long-term growth strategy based on "agricultural physical AI."
The Daedong Group is pushing a business transition away from a manufacturing-centered farm machinery model to one focused on AI-based autonomous farm equipment, agricultural robots, and a smart farming platform. In particular, it plans to build a "subscription AI farming service" model in which AI learns agricultural data and upgrades equipment performance through over-the-air (OTA) software updates.
Daedong is also accelerating the expansion of its global dealer network centered on the North American and European markets. By 2030, it plans to secure 1,000 dealers in North America and more than 700 in Europe, and to raise the share of revenue from new businesses from 11.9% this year to 25.9% by 2030. The company set targets of consolidation revenue of 3.59 trillion won in 2030, a price-earnings ratio (PER) of 10, a price-to-book ratio (PBR) of 2, and a return on equity (ROE) of 20%.
Daedong Gear will expand its electric vehicle parts business while entering the market for core robot parts such as reducers and actuators. It will upgrade its structure from a single-part supply focus to a module and system focus to strengthen profitability, and move to secure global clients. Daedong Gear is targeting revenue of 1 trillion won in 2030, a PER of 10, a PBR of 1, and an ROE of 8%.
Daedong Metals will expand high value-added businesses such as vacuum pump parts for semiconductor processes and high-precision cast parts for defense and marine engines. It will also nurture an advanced materials business based on heat-dissipating and flame-retardant composite materials to diversify its portfolio around high-growth industries such as AI data centers and electric vehicles. Daedong Metals set targets of revenue of 240 billion won in 2030, a PER of 10, a PBR of 2, and an ROE of 10%.
The three listed companies will also strengthen shareholder return policies. They plan to gradually raise the payout ratio to around 20% by 2030.
Na Young-jung, executive vice president for group management at Daedong, said, "We will shift to an AI- and robot-centered business structure based on our agricultural physical AI strategy," adding, "We will build a virtuous cycle that links stronger business competitiveness with shareholder returns."