[Click eStock] "Mercury, Earnings Growth Accelerates... Focus on New Business"

[Asia Economy Reporter Ji Yeon-jin] Mirae Asset Securities announced on the 2nd that Mercuri will see next-generation Wi-Fi sales begin in earnest, and new products and new businesses could serve as additional growth momentum.

Mercuri's sales in the first quarter of this year grew by 68.2% compared to the same period last year, and operating profit turned positive at 2.1 billion KRW. The company supplies wired and wireless routers (AP) that relay wired network signals wirelessly to the three major domestic telecom companies, and since the third quarter of last year, next-generation Wi-Fi 6 sales have been reflected in full.

When the previous generation Wi-Fi upgrade version '802.11ac Wave 2' was released in 2017, approximately 2.46 million devices were sold. Considering this year’s new subscribers to gigabit internet and device replacement demand from clients, as well as increased demand for Buddy products, sales of AP devices are expected to reach around 3 to 3.5 million units. Buddy is a product that functions as a Wi-Fi amplifier, and sales have been recorded since the fourth quarter of last year. As of the first quarter of this year, the proportion of routers combined with Buddy is estimated to account for 30% of device business sales.

Researcher Han Sang-jun of Mirae Asset Securities stated, "There are media reports that Mercuri will start supplying Wi-Fi IoT modules to companies like Coway, which will act as a positive factor for mid- to long-term diversification of sales items." He added, "Mercuri acquired a 12.5% stake in AIMS, a company operating electric scooter and motorcycle battery exchange stations and selling electric two-wheelers. Since AIMS is expected to handle electric motorcycle manufacturing, it is necessary to pay attention to whether Mercuri will achieve results in this new area."