[Click eStock] “Toptec, 2nd Battery Equipment Performance Surprise”

On the 28th, KB Securities analyzed that Toptec's performance in the secondary battery equipment sector recorded a surprise, indicating that active attention is needed.

Toptec posted consolidated sales of 166.5 billion KRW and operating profit of 24.1 billion KRW in the fourth quarter of last year, achieving growth of 174.7% and a turnaround to profitability compared to the same period the previous year. This is believed to be due to a significant recognition of secondary battery equipment sales in the fourth quarter.

For the full year, last year's sales reached 344.9 billion KRW and operating profit was 20.8 billion KRW, marking a 109% increase and a return to profitability compared to the previous year. Excluding the underperforming subsidiary Lemon's results, operating profit is estimated to be in the 30 billion KRW range. This represents a successful turnaround in last year's performance.

Hyunkyum Kim, a researcher at KB Securities, stated, "On the 20th of last month, Toptec announced an order worth 282.1 billion KRW related to the secondary battery assembly line," adding, "With the lineup expanding from the existing secondary battery smart factory and module line to the assembly line, it is considered a stock worth noting among secondary battery equipment companies."

Researcher Kim also noted, "As of last month, the order backlog is estimated to exceed 400 billion KRW, with most expected to be recognized as sales this year," and forecasted, "Future orders for secondary battery automation module equipment are anticipated, and new orders are also expected in the smart factory and display sectors, leading to significant sales growth in 2023 compared to the previous year."

Not only secondary battery equipment but also unmanned technology is gaining attention. He explained, "Toptec can implement manufacturing and logistics smart factories through various unmanned technologies such as AGV, OHT, OHCV, ROBOT, and a 1:1 packaging system for customer-customized products based on demand forecasting," and analyzed, "Following the recent unveiling of Coupang's Daegu FC (Fulfillment Center), there will likely be a change in perception regarding cutting-edge logistics centers."

Additionally, benefits from the growth of the extended reality (XR) market are expected. He assessed, "With the opening of the XR market, expansion of next-generation display facility investments such as IT-use OLEDoS (OLED on Silicon) is anticipated, from which Toptec is expected to benefit."