[Asia Economy Reporter Hyungsoo Park] Sinopax is showing strong performance. It appears that the claim that the reconstruction of Ukraine should start with supplying drinking water and daily necessities to citizens is influencing the stock price.
As of 10:21 AM on the 5th, Sinopax is trading at 3,370 KRW, up 9.59% from the previous day.
Denys Shmyhal, Prime Minister of Ukraine, announced a phased plan for Ukraine's reconstruction, presenting a reconstruction cost of 750 billion dollars.
He stated, "The restoration of the most urgent sectors such as water supply and bridges must be carried out immediately." Prime Minister Shmyhal estimated that the destroyed infrastructure facilities in Ukraine amount to about 100 billion dollars (approximately 130 trillion KRW).
Sinopax supplies products and services necessary for air and water purification from an environmental perspective. Its broad industrial scope covers everything from water purifiers used in households to various water supply and sewage systems, seawater desalination, and plants. It is widely applied not only to filters and water treatment systems but also to advanced electronic industries such as semiconductors and displays, as well as biosimilars, pharmaceuticals, medical, food and beverage, chemical and wastewater treatment/reuse, and seawater desalination. The nanomembrane and filter business requires high precision along with development capabilities, so continuous sales occur based on trust verified by customers. The wastewater reuse business, which supplies drinking and industrial water after purification processes that remove contaminants, and the business aimed at improving water quality by purifying wastewater to be harmless to nature, inherently have a public interest character that protects health and the environment.
Sinopax was the first domestic company to obtain FDA approval in the high-performance filter field in 2009. It received FDA approval in the United States for polypropylene (PP), polytetrafluoroethylene (PTFE) membrane filters, and in 2013 for polyethersulfone (PES) membrane filters, the first among domestic companies. The approved products can be used as process filters in pharmaceutical, bio, and food and beverage industries. Last year, Sinopax completed construction of the Ciasem water purification plant in Indonesia, applying the PVDF membrane filter method for the first time in Indonesia. Sinopax applied the UF membrane filter made of PVDF material acquired from LG Chem and its own developed water purification system to the Ciasem water purification plant. It can purify and supply 100 liters of water per second. The Ciasem water purification plant supplies tap water to about 100,000 people in the Blanakan area, and Sinopax receives payments from the Subang City Waterworks Bureau, ensuring a stable structure. Previously, in 2020, Sinopax donated a water purification system capable of supplying clean drinking water to the growing young generation in Bac Ninh Province, Vietnam.
Sinopax recorded consolidated sales of 71.4 billion KRW in the first quarter, a 42.8% increase compared to the same period last year. Operating profit reached 3.8 billion KRW, turning to black. Net profit increased by 319.9% to 4.8 billion KRW.
Kim Hyungtae, Senior Economist at Kim & Chang, said at the '10th Korea Chamber of Commerce ESG Management Forum' held last month at the Sangui Hall in Jung-gu, Seoul, "Since Russia's recent invasion of Ukraine, economic security has been highlighted, so it is necessary to review ESG issues related to economic security industries such as water (drinking water), food, energy, and cybersecurity." He emphasized the need for eco-friendly desalination technology and the establishment of a food network using the Indo-Pacific Economic Framework (IPEF).
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