[Special Stock] Powernet Builds Wi-Fi for COVID-19 Remote Classes in Elementary and Secondary Schools Nationwide... Subsidiary Synergy

[Asia Economy Reporter Hyungsoo Park] Powernet is showing strong performance. Amid the normalization of remote classes due to the novel coronavirus disease (COVID-19), news that the government will establish gigabit wireless networks in all elementary, middle, and high schools nationwide by the first half of next year appears to have influenced the stock price.

As of 12:50 PM on the 28th, Powernet is trading at 5,550 KRW, up 12.46% from the previous day.

On this day, the Ministry of Education and metropolitan and provincial offices of education announced that they will invest a total of 370.7 billion KRW in national and local funds to install wireless access points (APs) in approximately 209,000 classrooms in elementary, middle, and high schools nationwide by the first half of next year. Wireless access points are key devices that connect campus networks and mobile terminals via wireless signals.

The Ministry of Education explained that the 200,000 wireless access points to be introduced through this project represent the largest scale ever in network equipment procurement projects by the government and local governments.

The Ministry plans to complete early installation of 70% of the total units by the end of the winter vacation in February next year and to finish building wireless networks in all classrooms by the first half of next year.

Powernet, a specialist in power conversion devices, is recently developing embedded Wi-Fi modules to realize smart home appliances.

Powernet supplies integrated products combining power conversion devices and mainboards to major customers. It plans to provide standardized products optimized for the smart home era by incorporating Wi-Fi and Bluetooth functions.

Last year, Powernet acquired Mercury, a wired and wireless communication equipment company. Through close collaboration related to wired and wireless businesses connected to the 5G communication market, artificial intelligence (AI), and various IoT, it is fostering a future industrial ecosystem.