[Featured Stock] Narae Nanotech Draws Attention with All-Solid-State and Lithium-Ion Technology... Begins Recovery from Halved IPO Price

[Asia Economy Reporter Hyungsoo Park] Narae Nanotech, which was listed on the KOSDAQ market earlier this year, is showing strong performance. Despite a significant drop in its stock price compared to the initial public offering (IPO) price, interest in its new secondary battery business has increased. Recently, the stock prices of secondary battery-related companies in the domestic stock market have surged, which appears to be influencing Narae Nanotech's stock price as well.

As of 10:11 AM on the 7th, Narae Nanotech is trading at 9,600 KRW, up 7.14% from the previous day.

Founded in 1990, Narae Nanotech manufactures display thin-film coating, curing, and lamination equipment. In 1999, it succeeded in domestic production of the DY winding machine for monitors for the first time in Korea. It developed the world's first equipment for rollable TVs, strengthening its competitiveness in the display equipment market.

Last year, the company recorded sales of 135.2 billion KRW and an operating profit of 23.4 billion KRW, increases of 63.2% and 314.3% respectively compared to the previous year. It was listed on the KOSDAQ market with an IPO price of 17,500 KRW.

This year, amid poor performance, the stock price also declined. In the first half of the year, it recorded cumulative sales of 30.1 billion KRW and an operating loss of 1.9 billion KRW. Sales sharply decreased and the company turned to a deficit.

According to Narae Nanotech's semi-annual report, the company is newly pursuing the secondary battery business, one of the future new power businesses with diverse applications such as electric vehicles. Based on coating and drying technologies accumulated in the display sector, it is developing secondary battery process equipment. It is developing key manufacturing process equipment such as Coater, Drying, and Stacking machines.

Among next-generation batteries, it is developing equipment that coats anode and cathode powders onto current collectors in solid-state battery production lines and supplying it to customers for research purposes. Narae Nanotech has allocated part of the funds raised through its IPO to research and development costs for solid-state battery equipment.

With the increase in electric vehicle adoption, the battery industry is growing simultaneously. From next year, global battery demand is expected to surpass supply, leading to a prolonged supply shortage.

Jongseon Park, a researcher at Eugene Investment & Securities, explained, "Narae Nanotech has a track record of securing orders for LG Energy Solution's dry process development equipment in 2020 based on its lamination and coating technology," adding, "It plans to manufacture various products such as lithium-ion battery separator aramid coating and electrode coating in the future."