[Featured Stock] Toptec, World's Largest Lemon Nano Membrane Facility... Value 'UP' with Respiratory Masks

Lemon Pursues Listing, Highlights Respiratory Mask Production
Expands Nano Membrane Production Facilities with Procurement Funds

[Asia Economy Reporter Hyungsoo Park] As fear of the 'novel coronavirus' infection originating in Wuhan, Hubei Province, China spreads, efforts to find beneficiary stocks in the domestic stock market have begun in earnest. Amid a shortage of masks, Toptec's stock price is also on the rise. Attention is focused on the fact that its subsidiary Lemon, which is planning to be listed on the domestic stock market, produces respiratory masks.

At 10:51 a.m. on the 28th, Toptec was trading at 11,800 KRW, up 5.83% from the previous trading day.

The day before, the Ministry of Health and Welfare raised the infectious disease crisis alert to the 'caution' level after the fourth confirmed case of the novel coronavirus infection was reported, following a crisis assessment meeting by the Korea Centers for Disease Control and Prevention. During the 2015 MERS (Middle East Respiratory Syndrome) outbreak, the infectious disease crisis alert was maintained at the 'attention' level, but this is the first time in 10 years and 6 months since the novel influenza in July 2009 that the alert has been raised to the 'caution' level.

Toptec holds 62.76% (19.08 million shares) of Lemon's shares. Lemon has been continuously supplying nano-fiber membranes for respiratory masks to domestic and overseas customers since 2016. It produces them directly under the brand SOOMLAB and launched them in January last year. Since December last year, it has also been selling its own brand Air Queen Yellow Dust Mask (KF80) and Air Queen Protective Mask (KF94).

According to Lemon's securities registration statement, existing respiratory masks use a method of filtering fine dust by charging nonwoven fabric. Respiratory masks applying Lemon's nano-fiber membrane can control the fiber diameter constituting the membrane to about 100nm. Considering that the fiber diameter of existing nonwoven fabric is approximately 20,000nm, it achieves overwhelmingly superior fine dust blocking capability.

Toptec also acquired FT E&E, a nano-fiber developer. Since Lemon and FT E&E produce functional nano membranes and filter products (masks, sanitary pads), synergy effects are expected.

Lemon is pursuing an initial public offering (IPO). The funds raised through the public offering will be used to expand nano membrane production facilities. Lemon has the world's largest nano membrane production facility. It plans to increase the number of production facilities to a total of 17 by November to widen the gap with competitors. Upon completion of the expansion, production capacity will increase fourfold from 40 million square meters annually to 160 million square meters.

Lemon explained that it recognized the need to expand production capacity to respond to the global market after confirming that the cutting-edge nano-fiber manufacturing technology can be applied to business sectors such as outdoor textiles, hygiene products, and masks.