Tae-In Sik TSI CEO: "Achieving Second Growth with Next-Generation Mixing System"

Interview with Pyo Insik, CEO of TSI, Ahead of KOSDAQ Market Transfer on the 22nd

CEO of Pyoinsik TSI

[Asia Economy Reporter Eunmo Koo] This month, TS I, which is preparing to transfer its listing from the KONEX market to the KOSDAQ market, is making a new leap forward by leveraging the growth of the secondary battery market with its next-generation mixing system.

In an interview with Asia Economy on the 2nd, TS I CEO In-sik Pyo said, "In the past, we diligently invested venture capital into technology development, talent acquisition, and business expansion, and through the experience of seeing that such investments lead to growth, I came to believe that proper capital input results in proper output." He added, "The funds raised through this initial public offering (IPO) will also be precisely invested in technology development to enable the company to achieve a second phase of growth."

TS I is a manufacturer of secondary battery mixing systems. The mixing process is the first step in the electrode process that produces the cathode and anode plates. It involves mixing raw materials such as active materials, conductive agents, binders, and solvents in specific ratios to create a slurry, a solid-liquid mixture, which is then supplied to the next process, the coating equipment (coater). The mixing system collectively refers to the main mixer and peripheral equipment used in this process.

CEO Pyo highlighted TS I's competitive edge as the ability to produce customized equipment tailored to customer needs. He said, "Our strength lies in our ability to quickly understand customer requirements and commercialize products," emphasizing, "Our Dispersion Technology Center, which enables one-stop service from product research and development to testing, is the source of our competitiveness." The Dispersion Technology Center is a comprehensive research facility equipped with next-generation technology and customer-tailored equipment development, as well as mass production test equipment, allowing customers to directly experience the effectiveness of the equipment.

The company expects continuous growth based on the increasing demand for secondary batteries, especially driven by electric vehicles. CEO Pyo explained, "As interest in eco-friendliness rises and government support policies expand worldwide, battery supply contracts with automotive original equipment manufacturers (OEMs) are surging," adding, "The mixing equipment market, which accounts for about 5-7% of battery manufacturers' investment, is also expected to benefit." According to market research firm Yole D?veloppement, global secondary battery demand, which was around 248 gigawatt-hours (GWh) last year, is projected to reach 866 GWh in 2023, showing an average annual growth rate of 38%.

TS I has diversified its sales channels to the three major domestic battery companies (LG Chem, Samsung SDI, SK Innovation) and steadily increased new orders, improving its business performance. Last year, TS I recorded sales of 61 billion KRW and operating profit of 5.9 billion KRW. Notably, operating profit increased by 14.9% compared to the previous year, indicating improved profitability. CEO Pyo said, "Although overseas contracts were delayed more than expected due to COVID-19, considering the letter of intent (LOI) for the acquisition of French battery manufacturer SAFT, we expect to maintain last year's performance this year." The amount of new orders from major customers increased from 34.7 billion KRW in 2017 to 75.2 billion KRW last year, showing an average annual growth rate of 47% over the past three years.

The company plans to change the paradigm of the mixing system market with a continuous mixer in the future. Until now, secondary battery mixing systems processed raw materials in batches by inputting them into the main mixer and then passing them to the next process. The continuous system, however, continuously inputs raw materials into the mixer to produce slurry that can be directly coated onto electrode plates. TS I is currently developing a continuous mixer and preparing for commercialization. CEO Pyo said, "The quality improvement of slurry has now reached its limit," adding, "Now, enhancing the efficiency of space and cost in the mixing system is the key to strengthening our business capabilities."

The proceeds from the public offering will be used for future research and development, talent acquisition, and business expansion. CEO Pyo explained, "As orders increase, we need more factories, so we plan to purchase an additional assembly building and invest funds in expanding the Dispersion Technology Center." He also added, "We expect that obtaining KOSDAQ-listed status will make talent acquisition somewhat easier."

TS I plans to raise 1,847,000 shares through this public offering. The expected offering price is between 7,500 and 9,500 KRW per share, with a total expected offering amount of 13.8 to 17.5 billion KRW and an estimated market capitalization of 69.5 to 88 billion KRW. After a two-day demand forecast (pre-subscription for institutional investors) on the 6th and 7th, general subscription will be held on the 13th and 14th, with the listing on the KOSDAQ market scheduled for the 22nd. The lead underwriter is Korea Investment & Securities.

CEO In-sik Pyo, born in 1970, previously served as CEO of Taesung Gikong, the predecessor of TS I, after working at Jeil Gikong and Fine Giyun. Since 2011, he has established TS I and has been serving as its CEO.