[Special Stock] Igusan Industry's Profit Quintuples Due to Copper Price Rise and Increased Electric Vehicle Parts Sales

[Asia Economy Reporter Hyungsoo Park] Igu Industrial, a parts and materials company for electric vehicles, is showing strong performance. The rise in raw material prices and increased sales of electric vehicle parts and materials are believed to have positively influenced the stock price.

As of 9:10 AM on the 4th, Igu Industrial is trading at 4,690 KRW, up 11.4% from the previous day.

Founded in 1968, Igu Industrial is a non-ferrous metal specialized manufacturer producing industrial copper and brass plates using copper as the raw material. Based on last year’s data, Igu Industrial’s sales composition was 60% for automotive electronics, 30% for electrical and electronic use, and 10% for handsets, home appliances, and other products.

Jung Mingu, a researcher at Hana Financial Investment, stated, "The sales proportion for electric vehicles is gradually increasing," adding, "Igu Industrial’s product prices are linked to copper prices, and due to the price increase from rising copper demand since the beginning of the year, the company will benefit from raw material price increases through the end of the year."

He further predicted, "Igu Industrial is expected to achieve record-high performance this year due to the effect of rising raw material prices and improved product mix."

Researcher Jung also analyzed, "Based on its experience in supplying automotive electronic parts, Igu Industrial develops and manufactures parts for electric vehicles," and "It supplies terminals and lead frames for electric vehicle batteries to domestic and international customers."

Additionally, he said, "The sales proportion of electric vehicle parts for Igu Industrial is expected to increase from 7% in 2019 to 25% this year," and "The company plans to expand related production facilities from 4,000 tons to 5,000 tons per month by early next year."

He added, "Furthermore, the development of electric vehicle parts is steadily progressing," and stated, "The sales proportion of electric vehicle parts for Igu Industrial will continue to rise."

Hana Financial Investment estimates that Igu Industrial will achieve sales of 318.7 billion KRW and operating profit of 31.2 billion KRW this year, representing increases of 57.1% and 432.1% compared to last year, respectively.