[Asia Economy Reporter Hyunseok Yoo] Dong-A Eltek is showing strong performance. The news that Samsung Electronics has joined the Metaverse Alliance, formed with the purpose of creating an innovative metaverse platform through 'super cooperation' between industries and companies, seems to be influencing the stock price. KOSYS has risen to the price limit, increasing expectations for Dong-A Eltek. KOSYS developed repair equipment that improves the production yield of mini and micro LEDs necessary for implementing the metaverse. Dong-A Eltek, a Samsung partner company, supplies inspection equipment for mini and micro LEDs.
As of 10:13 AM on the 4th, Dong-A Eltek was trading at 12,800 KRW, up 6.22% (750 KRW) from the previous trading day.
According to the Ministry of Science and ICT, the number of companies and institutions participating in the Metaverse Alliance reached 202 as of the end of last month. This is an eightfold increase from 25 members at its launch on May 18. New members include Samsung Electronics, Shinhan Bank, Kookmin Bank, IBK Industrial Bank of Korea, SM Entertainment, Megastudy Education, Cheil Worldwide, Innocean, and CJ OliveNetworks. Samsung Electronics possesses comprehensive technological capabilities in key metaverse components such as virtual reality (VR), augmented reality (AR), and artificial intelligence (AI). The metaverse industry welcomed this, saying it would greatly help in developing innovative platforms.
Jongseon Park, a researcher at Eugene Investment & Securities, explained, "As we enter the metaverse era, the micro-display market for augmented reality (AR) and virtual reality (VR) content will blossom. Dong-A Eltek’s subsidiary, Sunic System, has already developed the world's first micro OLED equipment and continues to supply it for research and development purposes."
He added, "Last year, they supplied mass-production micro OLED equipment to China's BOE. BOE is known to plan commercializing display panels adopting micro OLED in the second half of the year," he analyzed.
He further explained, "Demand for micro OLED manufacturing equipment from display panel manufacturers is expected to form in earnest after the second half of the year, which will contribute to Dong-A Eltek's performance growth in the mid to long term."
Dong-A Eltek’s main products are LCD inspection equipment and OLED inspection equipment among display devices. Since its establishment in 1987, it has supplied TFT LCD inspectors to LG and Samsung. Through continuous technological development, it succeeded in domestic production of inspection equipment that initially relied on imports during the early days of the display industry.
With proven technology in the domestic market, it successfully expanded into China and overseas markets, diversifying its sales channels. In March 2009, it acquired Sunic System, a manufacturer of OLED deposition equipment, entering the OLED equipment market, which is spotlighted as the next-generation display, securing new growth engines. By having integrated production capabilities to manufacture both front-end and back-end core equipment, it further strengthened its competitiveness. Despite global crises such as reduced investment in LCD inspection equipment recently, steady growth is expected due to the growth of OLED and the continuous increase in supply of OLED inspection equipment.
Recently, investments in mini and micro LED inspection equipment have also gradually emerged, and it is expected that Dong-A Eltek’s inspection equipment will be supplied to various applications.
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