New Listing on KOSDAQ Market
Expansion Investment with IPO Raised Funds
Localization of EV Relays Previously Dependent on Imports
[Asia Economy Reporter Hyungsoo Park] YM Tech, a developer of relays, a core component for power control, is showing strong performance on its first day of listing on the KOSDAQ market.
At 9:16 a.m. on the 10th, YM Tech was trading at 63,700 KRW, up 13.75% from the opening price.
It started trading at 56,000 KRW, which is 100% higher than the public offering price of 28,000 KRW.
YM Tech, a developer of relays, a core component for power control, is set to begin full-scale expansion following its listing on the KOSDAQ market. Globally, strong regulations on carbon emissions have begun to prevent global warming. As policies to foster renewable energy as an alternative to fossil fuels gain momentum, YM Tech is expected to have many growth opportunities.
YM Tech’s main revenue product, the relay, is a switch device used in the electrical and electronics industries to control devices or current-carrying circuits. It operates by opening or closing switch contacts using an electromagnet. The company primarily produces DC high-voltage EV relays applied in energy storage systems (ESS), electric vehicles, EV chargers, and solar inverters. It also supplies DC relays and latch relays used in electric trains, rectifiers, and lighting control that use low-voltage DC power.
Major clients include Samsung SDI, LG Energy Solution, SK Innovation, and Signet EV. YM Tech develops products that meet customer requirements through years of technical consultations.
Funds raised through the initial public offering (IPO) will be used for factory expansion to increase EV relay production capacity and for facility investments to improve production line efficiency. Additionally, the funds will be allocated to research and development for next-generation models to expand market share in EV relays.
Currently, the EV relay production capacity is 448,000 units annually, with an operating rate of about 70% from 2018 to last year. Globally, investment in the eco-friendly energy industry, particularly the ESS sector, is increasing, driving demand for high-current, high-voltage EV relays. This is why the operating rate rose to 93.73% in the first half of this year. Since there is insufficient capacity to smoothly handle increasing orders from clients, production facilities will be expanded.
YM Tech also plans to actively respond to the rapidly growing electric vehicle market. It has started R&D on the EVS series, a hydrogen-sealed EV relay product mainly used in electric vehicles. The voltage used in EV batteries is trending upward from DC 400V to DC 800V to enable fast charging, longer driving range, and vehicle weight reduction. Reflecting this trend in the high-voltage EV market, YM Tech is developing DC 800V-class EVS series products. Prototype products will be developed within this year, with mass production planned for next year. After official testing and certification by authorized institutions and acquiring overseas standards, product supply is expected to begin in 2023.
In South Korea, disconnectors are now mandatory to prevent ESS fire accidents. Since there are no domestic disconnectors yet, foreign products are currently used. Considering the growth potential of ESS-dedicated disconnectors and isolators, YM Tech has started developing DC 1500V-class disconnectors and isolators that meet the requirements of ESS manufacturers.
Seungdoo Na, a researcher at SK Securities, said, "Relays are indispensable components not only for electric vehicles (EVs) driven by electricity but also for devices used for electric charging," adding, "This is because controlling electrical accidents caused by electrical overloads such as overvoltage and overcurrent is very important."
He continued, "As high voltage and high current are progressing to expand EV battery capacity and shorten charging time, safety standards are also continuously being strengthened," and "Demand for EV relays is steadily increasing."
He also noted, "Currently, YM Tech supplies EV relays mainly for commercial vehicles such as electric buses," and "In the future, it is expected to expand into the passenger electric vehicle and hydrogen vehicle markets."
Jongsun Park, a researcher at Eugene Investment & Securities, said, "Based on key core technologies, YM Tech will achieve stable growth by localizing EV relays that were previously dependent on imports and securing global references," adding, "It has secured global references from 350 customers in 21 countries, including LG Energy Solution, SK Innovation, and Samsung SDI."
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