[Edaily Reporter Shin Ha-yeon ] On the 23rd, independent research firm Value Finder assessed that DYC(310870)is establishing its defense business as a new growth engine, backed by stable performance in its automotive drivetrain components business. In particular, the firm projected that a revaluation of the company’s corporate value is likely as the effects of YC Corporation’s strategic equity investment and the earnings of its defense subsidiary, DYC Dynamics, begin to be fully reflected.

Jeon Woo-bin, a senior researcher at Value Finder, commented, “This is the first defense materials and components company in which LIG D&A has made an equity investment,” adding, “It has proven its stability through its performance, and now is the time to focus on the growth potential of its defense business.” He further stated, “We believe the value of the defense business is not currently reflected in the company’s market valuation.”

DYC is a company specializing in precision metal-machined parts for automotive powertrains, supplying core powertrain components to global automakers such as Mercedes-Benz, BMW, Audi, Porsche, and GM. As of the first quarter, exports accounted for 88% of its revenue, and once adopted for a specific vehicle model, the company maintains a supply structure that continues for 5 to 10 years until the model is discontinued, followed by up to 15 years of supply as service parts.

The defense business is handled by DYC Dynamics, which was acquired last year. Research Analyst Jeon stated, “This year marks the first year in which the full impact of the defense acquisition will be reflected,” adding, “While only five months’ worth of revenue was reflected in 2025 following the acquisition of controlling interest, we expect additional annual defense revenue of 9 to 10 billion won this year.” He went on to explain, “Expanding the share of the defense business, which is more profitable than automotive parts, will also have a positive impact on improving the company’s overall product mix.”

He also highlighted the expansion of cooperation with LIG D&A as a key investment point. Analyst Jeon analyzed, “LIG D&A’s strategic equity investment is not merely a financial investment but a signal of building a strategic partnership within the defense value chain,” adding, “The company is at a turning point where it could be elevated from a mere partner to a key supplier of core components for guided weapons.” He said, “Considering the expanding exports of flagship K-defense weapon systems such as Cheon-gung II, strengthening cooperation with LIG will serve as a trigger to expand the scale of the defense business beyond domestic procurement to include export volumes.”

Analysts also expect the automotive parts business to benefit from the growing adoption of eco-friendly vehicles. Researcher Jeon explained, “It is inappropriate to classify the company simply as a manufacturer of internal combustion engine parts,” noting, “The company is already mass-producing ISG motor shafts for PHEVs and HEVs, as well as drive motor rotor shafts for EVs, and is currently engaged in joint development with global e-powertrain manufacturers.” He further assessed, “Core power transmission components—such as shafts, yokes, differential cases, pinions, and ring gears—are required regardless of the drive system, so business risks associated with the powertrain transition are limited.”

Researcher Jeon emphasized, “The company’s structure combines a solid core business in automotive drivetrain components with an expanding share of eco-friendly components and growth in the defense sector,” adding, “It needs to be reevaluated as a provider of eco-friendly powertrains and defense materials, parts, and equipment, moving beyond the discount typically applied to internal combustion engine component stocks.”