Secured 2 Additional Equipment Lineups Through Technology Development During COVID-19 Pandemic
"Ultra-Short Delivery Possible with Comprehensive Lineup"
[Asia Economy Reporter Minwoo Lee] "It is true that we faced difficulties due to the novel coronavirus disease (COVID-19), but rather, we focused on research and development during this period, which became an opportunity for a leap forward."
This is the determination of Lee Heung-geun, CEO of LIT, which is scheduled to be listed on KOSDAQ on the 22nd. CEO Lee held an initial public offering (IPO) press conference on the 4th in Yeouido, Yeongdeungpo-gu, Seoul. Established in 2001, LIT started by supplying module process equipment for liquid crystal displays (LCD) based on inspection and coating technologies in its early days, and currently supplies core module process equipment for organic light-emitting diode (OLED) in the mobile and TV sectors.
CEO Lee said, "Although sales were not immune to the impact of COVID-19, we thought we had the capacity to invest in research and development." He added, "Through this, we secured two new mobile equipment lineups, including CRD coating machines and potting equipment, and we are now better prepared for next year than this year." In other words, they turned the crisis into an opportunity.
Led by CEO Lee Heung-geun, LIT’s employees, many of whom are former members of LG Production Technology Institute (now PRI), have concentrated their know-how accumulated over about 20 years on technology development. Although they faced setbacks in the early days despite having technological capabilities, they began to gain customer trust in terms of technology and stability after joining HB Technology Group, a display equipment specialist group, in 2018. From 2018, they secured a stable order line, achieving sales of 49.6 billion KRW and operating profit of 12 billion KRW. Last year, on a consolidated basis, sales reached 46.9 billion KRW, operating profit was 10.9 billion KRW, and net profit was 7.4 billion KRW. Operating profit margin and net profit margin reached 23.3% and 15.6%, respectively. Since 2015, sales have increased at an average annual rate of 30%.
LIT plans to leverage this public offering to become a leading equipment company covering the entire front and back processes of display as a main equipment supplier to its customers. Currently, LIT supplies equipment specialized for next-generation display module processes such as FoD, foldable, ultra-thin tempered glass (UTG), and OLED TV. CEO Lee emphasized, "With a diverse long-term lineup, ultra-short delivery times are possible. Even tasks that require four companies to work together to build a 60-meter line, LIT completes as a total solution at once, reducing the line length to 16 meters."
Going forward, LIT will focus on developing and supplying related module equipment for OLED mobile and TV sectors. Since the FoD, foldable (including UTG), and OLED TV markets are all expected to grow significantly, the strategy is to continuously increase sales growth and profitability. CEO Lee said, "Although we have already received love calls from many companies, the current customer base alone is sufficient to scale up," and vowed, "LIT will be a different kind of equipment company from the existing KOSDAQ equipment companies."
Meanwhile, LIT will finalize the public offering price after demand forecasting by the 5th, followed by subscription from the 11th to 12th. It is expected to be listed on the KOSDAQ market on the 22nd of this month, with Mirae Asset Daewoo as the lead underwriter.
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