[Featured Stock] Mercury Leads Battery Sharing and Subscription Services... Undervalued Eco-Friendly Mobility Stock

[Asia Economy Reporter Hyungsoo Park] Mercury is showing strong performance. The stock price appears to be influenced by expectations of benefits from the growth of the eco-friendly mobility market.

As of 9:59 AM on the 26th, Mercury is trading at 10,250 KRW, up 5.56% from the previous day.

Hanyang Securities analyzed Mercury as an undervalued beneficiary stock in the eco-friendly mobility sector.

Yongho Kim, a researcher at Hanyang Securities, stated, "As part of its entry into the eco-friendly mobility market, Mercury acquired a 12.5% stake in Ames," and introduced, "Ames has launched an electric motorcycle battery sharing and subscription service."

He continued, "Mercury is responsible for manufacturing Ames' electric motorcycles and battery stations," and explained, "On the 19th, Ames held a showcase unveiling the electric motorcycles and battery stations manufactured by Mercury."

Subscribers to Ames' battery subscription service can replace the depleted battery of their electric motorcycle at a nearby battery station by detaching the used battery and swapping it with a fully charged one, allowing immediate riding. The replacement time is 10 seconds.

Researcher Kim emphasized, "Despite government support such as purchase subsidies, the critical drawback of electric motorcycles?the charging time?limits market growth," and added, "It is expected that this drawback will be perfectly resolved through the battery sharing system."

He analyzed, "Key partners of Ames include KT, Shinhan Card, Mesh Korea, Hyundai Motor Company, and Samsung SDI," and noted, "The anticipated benefit is the market preemption effect." He added, "Ames and Mesh Korea signed an MOU to build an electric motorcycle and battery station system," and "Mesh Korea's delivery business ‘Booroong’ has over 43,000 riders."

Researcher Kim said, "The success potential of Ames and Mercury can be confirmed through Taiwan’s ‘Gogoro,’ which rapidly grew with a similar business model," and added, "Gogoro has been achieving more than double sales growth annually in Taiwan since 2015."

Mercury’s existing business is also growing rapidly. Researcher Kim analyzed, "Among KT’s new internet subscribers, about 25% are Giga Wi-Fi internet subscribers," and estimated, "The WiFi6 AP and EasyMesh AP sold to KT are estimated to total about 756,000 units."