[Asia Economy Reporter Hyungsoo Park] RNTO Technology is showing strong performance. It appears that the stock price is influenced by the analysis that significant profitability improvement will emerge through components that prevent secondary battery explosions.
As of 9:30 AM on the 6th, RNTO Technology is trading at 9,120 KRW, up 8.83% from the previous day.
Founded in 2002, RNTO Technology is a ceramic manufacturer. It is a company possessing material and production technology that produces everything from raw materials to ceramic components based on proprietary material technology.
Researcher Se-hwan Hwang of FS Research explained, "Ceramic components are mainly supplied to communication base stations," adding, "They are used in multilayer ceramic substrates for medical devices and battery protection devices for secondary batteries."
He continued, "The sales proportion of ceramic passive components called MLC (Multi-Layer Components) is 68.7%, mainly supplied for base stations," and added, "The end users include major base station companies such as Samsung Electronics and Nokia."
Furthermore, he emphasized, "MCP (Multi-Layer Ceramic PCB) refers to substrates made of ceramic, which are used in medical X-ray detectors and components for secondary battery protection circuits."
Researcher Hwang introduced, "Through its subsidiary RNTO Ceramics, the company is developing ceramic heat dissipation substrates applicable to electric vehicles."
He analyzed, "They have been developing and testing REP (Resistor Embedded Protector) for a long time," explaining, "It is a component used in the protection circuit of lithium-ion batteries that simultaneously blocks overcurrent and overvoltage within secondary batteries."
He added, "It functions to prevent explosions by physically cutting off the current to stop the battery from exploding," and explained, "Since they had to break into a market dominated by existing companies, it took a long time to build reliability references." He also mentioned, "It is expected to become visible in sales starting from the second half of this year," and added, "REP can be supplied to all places where secondary battery batteries are used, such as power tools, serving robots, and electric scooters."
Researcher Hwang emphasized, "When thinking of secondary batteries, people usually only consider batteries for electric vehicles," but added, "The use of secondary batteries is expanding into areas that previously did not use them, and since robots represent new demand that did not exist before, the areas where REP can enter are limitless."
He judged, "The second half of this year, when meaningful sales occur for the first time, is the time to pay attention to RNTO Technology."
Performance is expected to improve in the second half of this year. Researcher Hwang analyzed, "The postponed frequency auction in India has been completed," and "With Samsung Electronics selected as the base station supplier for India's Airtel, base station demand is expected to increase." He added, "Sales will occur from REP, which previously had no sales and only costs reflected, contributing to profitability as well."
Sales in the second half of this year are estimated to increase by 53.1% compared to the first half, reaching 16 billion KRW. Operating profit is expected to turn positive at 600 million KRW.
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