[Asia Economy Reporter Hyungsoo Park] Ezytronics is showing strong performance. The news that Hyundai Motor will invest 95 trillion won by 2030 to accelerate future businesses including electric vehicles appears to have influenced the stock price.
As of 10:57 AM on the 3rd, Ezytronics is trading at 16,050 won, up 8.81% from the previous day.
On the 2nd, Hyundai Motor announced at the online '2022 CEO Investor Day' that it plans to establish a lineup of more than 17 electric vehicle (EV) models, aiming to achieve global EV sales of 1.87 million units and a market share of 7%. By standardizing key EV components such as batteries and motors, the company presented a blueprint to double its operating profit margin compared to last year. This is interpreted as reflecting the determination of Hyundai Motor Group Chairman Chung Euisun.
Ezytronics is a specialized company in power conversion devices, focusing on inverters and converters. Power conversion devices convert current, voltage, frequency, etc., to suit their applications. An inverter converts direct current (DC) supplied through power grids or batteries into usable alternating current (AC). A converter converts alternating current (AC) into direct current (DC) or adjusts the DC voltage to appropriate levels for each electronic device. Power conversion devices are essential for all equipment that uses electricity as an energy source. Inverters and converters are indispensable components in power-consuming devices, so much so that they are called the 'heart' of electric and hydrogen vehicles.
Ezytronics supplies power conversion devices across various growth industries including electric vehicles, hydrogen vehicles, 5G communication equipment, used batteries and energy storage systems (ESS), and defense industries. As of 2020, more than half of its total sales, 58%, came from the mobility sector related to electric and hydrogen vehicles. Based on high-efficiency products, it holds the No. 1 domestic market share for DC/DC converters for electric vehicles and hydrogen buses, as well as braking inverters. It continues to supply the top three domestic electric commercial vehicle companies, including Hyundai Motor.
Researcher Jongseon Park of Eugene Investment & Securities said, "Entering new businesses based on technological capabilities is a positive factor," and explained, "The generation of used batteries is expected to surge after 2025, when electric vehicles begin to settle in."
He added, "Ezytronics developed used battery reuse technology and conducted a demonstration project with Hyundai Motor," and "plans to start mass production and sales after 2024."
Additionally, he emphasized, "The electric vehicle fast-charging market is also one of the promising markets," and "In December last year, it was selected as a developer of 120kW-class fast charger power modules."
As the electric vehicle market rapidly grows, battery material prices are soaring. The price of nickel, a representative battery material, surged 60% in one year, and lithium prices jumped sixfold. Battery companies such as SK and LG have launched recycling businesses to recover key metals like nickel, cobalt, and lithium from used batteries.
SK Securities forecasted that the global electric bus market will grow about fivefold from 99,000 units in 2021 to 450,000 units in 2030. The electric truck market is expected to grow about 16 times from 280,000 units in 2021 to 4.83 million units in 2030. Ezytronics holds the No. 1 domestic market share for braking inverters for commercial buses in Korea. It is expected to benefit from an increase in overseas customers starting this year.
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