[Featured Stock] Seoul Viosys Considers 5-Fold Expansion of COVID-19 Sterilization UV LED... Expectations for 'Second Seegene'

[Asia Economy Reporter Hyungsoo Park] The stock price of Seoul Viosys, which achieved strong performance in the second quarter of this year, is rising. Growing interest in sterilization and purification appears to have influenced the stock price with expectations of improved UV LED performance.

As of 11:51 a.m. on the 7th, Seoul Viosys is trading at 23,300 KRW, up 7.62% from the previous day.

Seoul Viosys surpassed quarterly sales of 100 billion KRW for the first time since its establishment in the second quarter of this year. The company recorded sales of 103.2 billion KRW in Q2, a 15% increase compared to the same period last year. Operating profit was 6 billion KRW, down 22% from Q2 last year.

The company explained that new demand for the ‘Biorez’ technology, which has proven sterilization power against COVID-19 and other viruses, increased, and full-scale supply to customers was reflected in the sales.

Visible LED sales increased by double digits compared to the previous quarter. UV LED sales showed triple-digit growth quarter-on-quarter as new demand for the world’s first Biorez (Violeds) technology, proven to sterilize coronavirus, surged and supply to global top-tier customers began.

Seoul Viosys holds second-generation LED patent technology that will lead the industry for more than 10 years and owns over 4,000 patents, including more than 1,000 application patents.

A Seoul Viosys official said, "Biorez technology is recognized as a new optical technology in the bio field by proving sterilization power against various bacteria threatening human life," adding, "Seoul Viosys has secured 50,000 hours of reliability with differentiated technology, and Biorez technology is becoming a necessity rather than a choice."

Jongwook Lee, a researcher at Samsung Securities, analyzed, "Consumer perception changes may continue even after the pandemic phenomenon," and "profitability is gradually improving along with the increase in UV LED sales."

He also added, "Sales of UV LEDs, which had been stagnant for a while, are now showing significant growth," noting, "UV LEDs are mainly used for sterilization and purification, and specific orders have appeared in air conditioners, washing machines, water purifiers, and even automotive air conditioning after the pandemic."

He explained, "In the conference call, it was mentioned that UV LED production capacity increased fivefold compared to the end of last year," and "an additional fivefold expansion is under consideration."

The researcher said, "UV LED sales increased to about 8 billion KRW in Q1 and about 16 billion KRW in Q2," and "next year, quarterly UV LED sales could reach 30 billion KRW, and with additional expansion, production facilities could reach 60 billion KRW quarterly in 2022."

As expectations grow that Seoul Viosys’s growth speed will accelerate after COVID-19, more investors are hoping for a growth trend similar to Seegene, which saw rapid increases in COVID-19 diagnostic kit sales. Seegene’s market capitalization is approaching 8 trillion KRW on expectations of improved Q2 performance. Its stock price has surged 887% this year. During the same period, Seoul Viosys’s stock price rose about 100%.