GI Tech, the Only Domestic Repairer for Secondary Batteries... SK, LG, Northvolt as Major Clients

[Featured Stock] New Listing on KOSDAQ Market
Opening Price Set at 28,000 KRW, 100% Above the 14,000 KRW IPO Price
Repair Demand Continues to Rise Due to Advanced Secondary Battery Performance

[Asia Economy Reporter Hyungsoo Park] GI Tech, newly listed on the KOSDAQ market, is soaring compared to its IPO price.

At 9:26 a.m. on the 21st, GI Tech was trading at 33,000 KRW, up 18.04% from the opening price. The opening price was set at 28,000 KRW, which is double the IPO price of 14,000 KRW.

Previously, GI Tech recorded a competition rate of 2,068 to 1 in the demand forecast conducted for institutional investors from the 5th to the 6th. The IPO price was set at 14,000 KRW, exceeding the top end of the desired range of 11,500 to 13,100 KRW. In the demand forecast, 98% of participating institutions offered prices above the top end of the band.

Founded in 1990, GI Tech is a manufacturer of secondary battery and display coating equipment. Its main product lines include secondary battery coating equipment (SLOT DIE) and display coating equipment (SLIT NOZZLE). The company also operates a repair business for worn equipment. The slot die is a core piece of equipment used in roll-to-roll machinery, determining the electrode area, thickness, and pattern in the coating process, and must be replaced periodically. The sales composition by customer is SK Innovation 41%, LG Energy Solution 35%, Samsung Display 13%, and others 11%.

Hana Financial Investment forecasted that GI Tech’s sales growth rate will increase due to large-scale investments by major customers. In April this year, SK Innovation concluded its lawsuit and began large-scale facility investments. It is estimated that a 2 trillion KRW investment will be made in the second plant in Georgia, USA. There is a high possibility that sales of the exclusively supplied slot die will increase.

As secondary battery performance advances, the frequency of coating equipment use has increased, shortening the repair cycle from 2 years to 6 months. Due to the nature of the equipment, which must be replaced with new products after 2 to 3 reuses, the replacement cycle has shortened, driving sales growth. GI Tech plans to strengthen future growth engines by entering new businesses such as hydrogen batteries and semiconductors through its existing coating equipment technology.

Yoon Hyukjin, a researcher at SK Securities, said, "Due to the characteristics of the Slot Die, it must be manufactured according to the characteristics of each process line, such as electrode thickness and area," and introduced, "GI Tech supplies customized parts to customers based on its own Slot Die design technology."

He added, "They are currently supplying to SK Innovation’s Georgia plant and plan to supply to LG Energy Solution’s Poland 70GWh line," explaining, "In the case of SK Innovation, they are the exclusive supplier, and for LGES, they estimate a 50% supply share (with Japan’s Hirano holding 50%)."

He predicted, "Repair sales, which account for 26% of GI Tech’s total sales, will increase over time due to shortened cycles caused by changes in secondary battery electrode material properties and the widening of the coating process," and stated, "The previous repair cycle of about 2 years has been shortened to about 6 months, and due to the nature of parts that must be replaced after 2 to 3 repairs, replacement demand will also increase."