[Click eStock] "Polaris Works, High Growth Expected with Entry into School Modular Business"

[Asia Economy Reporter Yoo Hyun-seok] Yuha Securities analyzed on the 31st that Polaris Works is expected to achieve high growth by entering the school modular business. No investment opinion or target price was presented.

Polaris Works is a company specializing in image sensor packaging. Recently, to secure future new growth engines, it added eco-friendly business purposes at the shareholders' meeting and entered the mobile school modular business and automotive air conditioning parts business.

Mobile school modular refers to buildings applying eco-friendly construction methods composed of multiple cubes to schools. Interior materials, mechanical equipment, and electrical wiring are pre-manufactured in factories and assembled on-site. It is mainly used as a temporary school during school reconstruction and remodeling periods.

Yu Seung-jun, a researcher at Yuha Securities, said, "Polaris Works signed a contract with PosCube to enter the modular business," adding, "PosCube is Posco International's first in-house venture, which successfully completed the Gochang High School project, Korea's first mobile modular school."

He said, "The government announced the Green Smart Future School plan to remodel aging schools into future-oriented schools as one of the ten major tasks of the Green New Deal," adding, "As the first phase of investment, remodeling budgets for 2,835 buildings will be supported by 2025, with a budget exceeding 18 trillion won, and about 30% of it is expected to be used for temporary classrooms." He added, "Despite being a large-scale project, there are very few suppliers of mobile school modulars, so Polaris Works is expected to benefit."

It is also expected that sales recovery of existing businesses will be possible as sales of image sensor packaging for automobiles and laptops expand. Researcher Yu emphasized, "Image sensor sales, which were around 8 billion won last year, are expected to increase to 13 billion won this year, and the new automotive air conditioning parts business is expected to generate sales of about 6 billion won this year," adding, "The core of performance growth, the school modular, is expected to be supplied in earnest from the second half of the year, leading to significant sales growth."