ResearchAlum "First Domestic Mass Production of Barrier Film... Entering Full Growth Phase"
Visible New Business Results for Barrier Film in Organic Solar Cells
Performance Expected to Grow Alongside ESL Market High Growth
[Asia Economy Reporter Hyungsoo Park] Research Alom analyzed on the 23rd that I-Component has grown into the world's No. 1 supplier of barrier films for ESL (Electronic Shelf Label) and is expected to be re-evaluated for its corporate value. The stock price outlook is 'positive,' with a target price of 11,700 KRW.
Researcher Doyoon Kim of Research Alom explained, "I-Component entered the ESL barrier film market in 2019, which was previously 100% monopolized by the US company 3M, and it is understood to have secured more than 80% market share this year."
He added, "Related sales increased from 3.4 billion KRW in 2019 to 7.3 billion KRW in 2020," and "It is expected to record 11.7 billion KRW this year."
He further stated, "By acquiring SES Imagotag, the world's No. 1 ESL company based in France, I-Component secured a stable demand source and finalized Chinese BOE, the world's No. 1 ESL panel manufacturer, as its key client," adding, "They succeeded in targeting the market with products that secured cost-effectiveness compared to 3M."
Barrier films serve to protect display materials, particularly blocking the penetration of oxygen and moisture. OLED, a representative display material, is a fluorescent organic material that experiences shortened product lifespan and functional degradation when exposed to air or moisture, making barrier films and glass essential as blocking layers.
Researcher Kim said, "I-Component developed barrier films applicable to organic solar cells and completed supplier registration last year with Hanergy, one of China's largest solar cell companies,"
According to global media outlet Digital Journal, Hanergy's US subsidiary was certified in August this year by the National Renewable Energy Laboratory for achieving the world's highest energy conversion efficiency of 31.6% with gallium arsenide dual-junction thin-film solar cells. In addition, Hanergy achieved the world's highest conversion efficiency in two CIGS thin-film solar cell materials.
Researcher Kim emphasized, "They plan to enter the supply chain of European solar cell companies, expecting entry into the non-silicon solar market such as organic solar cells," and added, "Replacing the glass materials mainly used in existing solar cells with the company's barrier films facilitates the production of curved and flexible panels and enables panel weight reduction."
He continued, "According to market research firm Mordor Intelligence, the global ESL market size is expected to grow from 1 trillion KRW this year to 2.4 trillion KRW by 2025, with an average annual growth rate of 24.5%," and analyzed, "Given that they secured the world's No. 1 company as a final client, ESL barrier film sales will steadily increase in line with the growth of the upstream market."
He stated, "I-Component has been investing 4.7 billion KRW since January this year to expand production," and "It is understood that all equipment has been delivered, and after expansion, ESL barrier film production capacity will double compared to before."
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