[Featured Stock] iL Science, Next Year's Sales Five Times Last Year's... Super Rookie Emerges in Future Car Market

[Asia Economy Reporter Hyungsoo Park] IL Science is showing strong performance. Securities firms' analysis that the company will continue to grow by securing a business portfolio for building the future car ecosystem appears to have influenced the stock price.

As of 9:58 a.m. on the 14th, IL Science is trading at 5,650 KRW, up 7.41% compared to the previous day.

Yuanta Securities expects that the acquisition contract of ‘EyeTronics,’ which possesses core technologies of the next-generation intelligent transportation system (C-ITS), an essential element for realizing fully autonomous driving, will mark the beginning of a full-scale structural improvement for IL Science.

Researcher Seonjae Heo of Yuanta Securities analyzed, "Established in 2000, EyeTronics is a technology-leading company that has secured core C-ITS technologies, Advanced Driver Assistance Systems (ADAS), and digital image processing technologies," adding, "Based on 2020 performance, it is reasonable to expect at least a fivefold increase in scale and improved profitability by next year."

He continued, "They have secured mid- to long-term growth momentum through business diversification," emphasizing, "silicone lenses for multi-beam headlamps for finished car manufacturers, C-ITS infrastructure construction for the Ministry of Land, Infrastructure and Transport, and a foundation to fully launch smart electric vehicle charging business have been established."

Furthermore, he projected, "It is expected to enjoy a first-mover advantage in the high-growth future car market," estimating "sales of 104.2 billion KRW and operating profit of 10.1 billion KRW next year." The estimates for this year are sales of 51.8 billion KRW and operating profit of 3.4 billion KRW, while last year recorded sales of 17.6 billion KRW and an operating loss of 5.1 billion KRW.

He added, "From next year, with the supply of silicone LED lenses to finished car manufacturers and overseas sales by Polinique, it is expected to enter a full-fledged growth phase," analyzing, "The direction of structural improvement has already been confirmed, and since steep performance growth is anticipated in the future, it is necessary to watch closely from now on."

IL Science developed the world's first silicone lenses for multi-beam headlamps, a core component of future cars, in 2015. Multi-beam headlamps automatically adjust the intensity and direction of light according to driving conditions to support optimal visibility. Researcher Heo introduced, "Multi-beam headlamps are an essential headlight system in autonomous driving environments," explaining, "This system clearly illuminates the front view and automatically controls glare for oncoming vehicles, creating a safe environment where the vehicle can drive itself."

Since 2017, IL Science has undergone lens testing to supply multi-beam headlamps to Hyundai Mobis. In September last year, it was registered as a partner company of Hyundai Mobis. Researcher Heo explained, "As full-scale product supply is expected to begin, it is judged that the company has passed the first gateway to enter the future car market."

To enter the electric vehicle charging infrastructure market, IL Science signed a memorandum of understanding in January this year with ChargeIn, an electric vehicle charging platform, for a smart streetlight-based electric vehicle charging business using renewable energy. Smart streetlights capable of charging electric vehicles allow users to charge their vehicles without occupying separate space at streetlights installed in busy urban centers or residential areas. Researcher Heo predicted, "Pilot installations on highways and other locations are expected this year," and forecasted, "Full-scale installation expansion will take place from next year onward."