[Click e-Stock] "Furontieo, High Growth Expected in Automotive Camera Industry"

Yuanta Securities Report

[Asia Economy Reporter Minji Lee] Yuanta Securities on the 29th forecasted that Purontier will benefit from the high growth trend in the automotive camera industry.

Purontier is a company specializing in automation equipment related to camera modules. It operates businesses involving the sale of assembly and inspection equipment for automotive cameras and key components for automated processes.

The automotive camera modules, which are the upstream industry of the company's main equipment Active Align, are showing a rapid growth rate of over 20% annually. As the level of autonomous driving improves, the number of cameras installed in vehicles is increasing. With automotive cameras expanding into sensing areas, an upgrade in pixel count is also expected. Myungjun Kwon, a researcher at Yuanta Securities, stated, "This will cause changes in equipment specifications, leading to replacement demand and an increase in the average selling price (ASP) of the equipment."

The company continues to develop equipment for the first time in Korea. In 2012, it developed the Active Align equipment; in 2016, the Dual Align; in 2018, the Trifocal sensing camera; and in 2021, the autonomous driving Lidar Active Align equipment, demonstrating high technological competitiveness.

Researcher Kwon explained, "Since automotive camera products vary by customer and by brand within customers, module automation and inspection equipment also require customized products for each customer. Having experience in supplying products to numerous customers will act as a comparative advantage in the competitive landscape."

The latter part of the camera module manufacturing process mainly consists of Active Alignment, Calibration, Focusing, and Final test. The company has already established equipment from the competitive Active Alignment to the Final test stage. Researcher Myungjun Kwon said, "Due to factors such as production efficiency, purchasing convenience, and after-sales service, the turnkey method of equipment orders is likely to expand," adding, "An increase in order amounts per client is expected."