[Click eStock] "YM Tech, Beneficiary of the Electric Vehicle Era... Sustained Long-Term High Growth"

[Asia Economy Reporter Kwon Jae-hee] NH Investment & Securities forecasted on the 5th that YM Tech will continue its high growth based on solid demand.

YM Tech is a parts company engaged in the core business of 'EV Relay,' a key component for eco-friendly vehicles such as hydrogen and electric cars.

NH Investment & Securities expects YM Tech's performance this year to achieve sales of 41.2 billion KRW and operating profit of 10.3 billion KRW. Although there is a cost burden due to the price increase of raw materials such as rare earth elements, the product price was raised by 10% earlier this year, so the annual operating profit margin is expected to be maintained at around 25%.

YM Tech is expected to sustain long-term high growth due to the strong performance of EV relays. YM Tech's main product, the EV relay, is an essential component used in high-voltage, high-power batteries, and the domestic market alone is estimated to be worth 100 billion KRW by 2026.

Researcher Baek Joon-gi of NH Investment & Securities analyzed, "YM Tech's high growth will continue for a long time. Considering YM Tech's market share, sales are expected to reach 55 billion KRW, and taking into account an export ratio of 60%, sales could be expected to reach up to 130 billion KRW."

In particular, YM Tech plans to start construction of a new factory with an area of 6,500 pyeong in 2023 to mass-produce EV relays. The new factory is expected to generate sales of around 60 billion KRW.

Researcher Baek stated, "YM Tech's sales were only 12.3 billion KRW in 2019 but recorded 41.2 billion KRW in 2022. Once the new factory expansion is completed, stable production of EV relay products for ESS and electric vehicles is expected."