[IPO] Solux "Leap to Become a Global LED Lighting Leader"

[Asia Economy Reporter Jang Hyowon] “Solux is a company that has grown with the management goal of contributing to human happiness through trusted products and services. We will continue to develop products that satisfy our employees and clients, and stand tall in the global market.”

Kim Bokdeok, CEO of Solux, a total LED lighting solution specialist, held a press conference on the 23rd in Yeouido with key executives to announce the growth strategy after listing.

Solux manufactures LED lighting for various purposes, from indoor lighting to streetlights, tunnel lights, and nuclear power plant lighting. Based on 24 years of experience, it independently develops differentiated products such as premium edge lighting. The company has undertaken prestigious projects ranging from residential spaces like Hannam The Hill, Nine One Hannam, and Seoul Forest Trimage, to Seoul Dragon City, The Plaza Hotel, and the National Museum of Korea. It has secured numerous top-tier clients, including first-tier construction companies like Daewoo Construction, Hyundai Construction, and Lotte Construction, as well as public institutions such as Korea Expressway Corporation and Korea Hydro & Nuclear Power.

The company’s core competencies can be summarized as ▲unique product development capabilities ▲one-stop production system ▲differentiated business model. Its in-house R&D center is a cradle for differentiated design and technology development. In fact, Solux holds 28 invention patents and 393 design patents, and has won a total of 12 awards domestically and internationally, including ‘Good Design’ and ‘IDEA (International Design Excellence Awards),’ proving its competitive edge in product development.

Additionally, it has established a one-stop production system at its Gongju and Wonju factories, handling everything from component design to mass production of finished products. This system improves product quality, optimizes cost efficiency at each process, and enhances responsiveness to clients. Its business divisions, segmented into B2B, B2C, B2G, ESCO business, and overseas operations, provide a stable growth foundation unaffected by fluctuations in the upstream market.

From 2017, the company recorded an average annual sales growth rate of 12.6% over three years. Last year, it achieved sales of 71.1 billion KRW and operating profit of 6.9 billion KRW. In the first half of 2020, it posted sales of 24.1 billion KRW and operating profit of 1.3 billion KRW. As of the end of September 2020, its order backlog stood at 50.6 billion KRW. Considering the industry characteristic of sales concentrating in the second half of the year and the clustering of high value-added projects in the fourth quarter, growth exceeding last year’s performance is expected.

With energy saving and eco-friendly issues emerging as nationwide priorities and the global LED lighting market expanding, Solux plans to accelerate growth by focusing on B2G and ESCO businesses in the short to medium term, and B2C and overseas businesses in the medium to long term.

First, the B2G business will continuously increase the number of products registered with the Public Procurement Service and strengthen close sales efforts to respond to government-led LED lighting replacement demand. Leveraging its technology to manufacture products with the highest existing grade of 500kGy (kilogray, a radiation exposure unit), it aims to dominate the nuclear power plant lighting replacement market. The ESCO business will expand product development and strengthen partnerships with collaborators in line with outdoor lighting replacement plans by Korea Expressway Corporation and others. The B2C business plans to expand its construction, logistics, and after-sales service organizations and dealerships, while diversifying sales channels such as online and home shopping.

The overseas market is just beginning to switch from fluorescent lamps to LED lighting. The company plans to first target the U.S. and Middle East markets, then expand into Asia based on those references. It is particularly targeting not only general LED lighting but also the nuclear power plant lighting market. Having developed the world’s first 800kGy product, Solux aims to secure a dominant position in the emerging special lighting market and lead the global market.

Kim Bokdeok, CEO of Solux, said, “Solux is a solid company that generates profits through unique competitiveness in the fierce LED lighting market. Along with strengthening the product lineup and expanding production capacity, which are the roots of our business, we will seize newly emerging markets by enhancing the capabilities of all business divisions and leap forward as a global leading company.”

Meanwhile, Solux plans to offer a total of 1,973,670 shares (1,619,790 new shares and 353,880 existing shares) in its public offering. The expected price band is 8,000 to 10,000 KRW per share, with the anticipated amount raised between 15.8 billion and 19.7 billion KRW. The offering price will be finalized through demand forecasting on the 23rd and 26th, with subscription taking place from the 29th to 30th. The company is scheduled to enter the KOSDAQ market in early November. Mirae Asset Daewoo is the lead underwriter.