[Featured Stock] P&C Tech, Exclusive Domestic Supplier of Electric Railway Power Supply Devices... Competitiveness Proven by Prior Entry into Indonesia

[Asia Economy Reporter Hyungsoo Park] Railway-related stocks are collectively showing strong performance. News that Indonesia and Saudi Arabia highly value domestic railway technology appears to be influencing stock prices.

As of 2:54 PM on the 17th, P&C Tech is trading at 7,030 KRW, up 21.63% from the previous day.

P&C Tech began developing a fault point indication system jointly with the Korea Railroad Research Institute in 2000 and developed the Fault Locator (F/L), a fault point indication device for electric railway power supply lines, in 2002. The company filed a patent for it. It is exclusively supplied domestically, with no competing products except for Japan’s Tsuda product.

In Korea, railway track installation increases annually, and this system quickly and accurately locates faults caused by lightning strikes or magpie nests causing short circuits on the tracks. Based on accumulated technology, the company developed an electronic power meter capable of measuring bidirectional power and completed registration with Korea Electric Power Corporation. As a power IT specialized company, it developed electric vehicle chargers and directly produces and supplies digital meters and residential kitchen automatic fire extinguishing devices. Leveraging its licenses in electrical construction, information and communication construction, and specialized fire facility construction, the company is diversifying its business areas based on its technological capabilities.

The company supplies distribution automation terminal devices through bidding to countries including India, Indonesia, Malaysia, Sri Lanka, Thailand, Saudi Arabia, Oman, Colombia, Jamaica, Jordan, Morocco, Greece, and Sweden. It is continuously expanding its presence in new countries. The devices are already in use by various overseas power authorities and are being pilot tested by the German power company EON after interoperability testing with ABB systems. The product’s functions and performance are on par with or exceed those of foreign advanced companies. In terms of price, it also secures sufficient competitiveness compared to foreign advanced companies.

The company emphasizes that it achieves maximum sales in overseas markets with the item ‘digital protective relay’ through solid technological capabilities and thorough quality control. It supplies to Asian and Middle Eastern countries such as Indonesia, Iran, Syria, and Egypt.

Earlier, on the 14th, Won Hee-ryong, Minister of Land, Infrastructure and Transport, engaged in ‘sales diplomacy’ to promote the entry of domestic companies into Indonesia’s new capital city project.

The Ministry of Land, Infrastructure and Transport announced that Minister Won visited Bali, Indonesia, met with the Minister of Transportation, the Minister of the New Capital City Agency, and the Acting Governor of Jakarta, signed a memorandum of understanding (MOU) for cooperation on the development of Jakarta’s MRT Phase 4, and began full discussions on a pilot housing complex for new capital city officials. The MOU was advanced based on discussions between Minister Won and Indonesian Minister of Transportation Budi Karya Sumadi during his visit to Korea in June this year, and was signed together with the Jakarta metropolitan government, the project implementer. The ministry explained that this is significant as it increases the possibility of Korean companies participating in the MRT project, which had mainly involved Japanese companies until now.

Hyundai Rotem signed an MOU for railway cooperation with the Saudi Arabian Ministry of Investment. The core of the agreement is to build railway infrastructure within NEOM City. If Hyundai Rotem wins the Saudi high-speed rail project in the future, it will mark the first export success of domestically produced high-speed rail. The scale of the Saudi high-speed rail project is estimated at 2.5 trillion KRW.