[Asia Economy Reporter Yoo Hyun-seok] Nine Tech is soaring. The expectation of benefits is influencing the stock price as LG Group decided to focus on nurturing its electric vehicle-related parts business.
As of 10:33 AM on the 4th, Nine Tech was trading at 5,080 KRW, up 18.55% (795 KRW) compared to the previous trading day.
Kyobo Securities recently analyzed that Nine Tech is expected to benefit from investments in secondary batteries. Established in June 2007, Nine Tech was listed through a SPAC merger in April this year. It is a manufacturer of secondary battery display equipment and developed LCD and OLED vacuum equipment in 2010.
Choi Bo-young, a researcher at Kyobo Securities, explained, "Since supplying secondary battery equipment to LG Energy Solution in 2018, the company has established its current business system. As of last year, the sales composition was 83.8% from secondary battery equipment, 9.8% from display equipment, and 6.4% from others."
Last year, the number of employees increased by 10% compared to the previous year, and the Pyeongtaek Industrial Complex factory was expanded to establish a response system for front-end market growth.
Researcher Choi emphasized, "Along with aggressive expansion through the IPO, benefits are expected from secondary battery investments in China and Poland. Nine Tech’s customers with 100% secondary battery sales are LG Energy Solution."
He added, "According to the lamination & stacking manufacturing method of the customer's battery, Nine Tech exclusively supplies the relevant equipment," and expressed expectations that "Nine Tech will accompany LG Energy Solution."
Furthermore, he said, "Through the official launch ceremony of the newly established corporation on December 1, the company set a goal to achieve 30 trillion KRW in sales by 2024," and added, "We expect benefits from aggressive expansion through the IPO and investments in small, medium, and large secondary batteries in China and Poland."
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