[Edaily Reporter Shin Ha-yeon ] DYC(310870)is trading up by more than 8% in early trading on expectations of growth in its defense business.

According to MP Doctor on the 23rd, as of 9:15 a.m., DYC is trading at 1,399 won, up 8.87% from the previous trading day.

On this day, the independent research firm Value Finder assessed that, in addition to stable earnings from its automotive drivetrain components business, DYC’s defense business is establishing itself as a new growth driver.

Jeon Woo-bin, a researcher at Value Finder, stated, “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 earnings, and now is the time to focus on the growth potential of its defense business.” He further explained, “We believe the value of the defense business is not yet reflected in the company’s current market valuation.”

The report highlighted that the earnings of the defense subsidiary, DYC Dynamics, will be fully reflected starting this year, and noted the potential for expanded partnerships as a key supplier of core components for guided weapons following LIG D&A’s strategic equity investment. It also analyzed that revenue growth in the defense business is expected to accelerate alongside the expansion of K-defense exports, such as the Cheon-gung II.

Last May, LIG D&A invested 2 billion won in DYC through a third-party private placement, and the entire amount was reinvested in DYC Dynamics’ capital increase.

Furthermore, the report projected that DYC Corporation could benefit from the shift toward eco-friendly vehicles, as the company is mass-producing powertrain components for hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and electric vehicles (EVs).

DYC’s consolidated revenue for the first quarter of this year reached approximately 33.2 billion won, a 27% increase compared to the same period last year. Founded in 2000, DYC is a company specializing in precision metal-machined powertrain components for automobiles that was listed on the KOSDAQ market in 2021.