[Featured Stock] Amogreentech Grows with Tesla... Electric Vehicles with High-Efficiency Core Components Increase

[Asia Economy Reporter Hyungsoo Park] Amogreentech is showing strong performance. Securities firms' analysis that operating profit will surge again this year following last year appears to have influenced the stock price.

As of 1:49 PM on the 2nd, Amogreentech is trading at 15,640 KRW, up 13.91% from the previous trading day.

Hana Securities estimated that Amogreentech will achieve sales of 179.1 billion KRW and operating profit of 19.8 billion KRW. This represents increases of 26.0% and 125.7%, respectively, compared to last year.

Researcher Kyusang Kim of Hana Securities explained, "Last year's operating profit increased by more than 400% compared to the previous year," adding, "The increase in production volume of Tesla, a major client, led to about a 30% increase in sales of high-efficiency magnetic components, driving performance improvement."

He continued, "As the sales proportion to electric vehicle manufacturers, a high-growth industry, increased, the operating profit margin jumped from 1.4% in 2021 to 6.2% in 2022," adding, "This is why this year is even more promising."

He analyzed, "Tesla currently has a production capacity of up to 1.9 million units," and "Production volume is expected to increase to 2.5 million units in 2024," further stating, "Tesla anticipates an annual production expansion rate of 50% going forward."

Researcher Kim emphasized, "Rivian has secured 114,000 pre-orders," and "Rivian is an electric vehicle specialist focusing on high-power trucks, and we expect an increase in the average selling price (ASP) per unit due to the enlargement or increased adoption of high-efficiency magnetic components."

Additionally, he forecasted, "Amogreentech is supplying or in discussions to supply high-efficiency magnetic components to numerous domestic and international automakers," and "Due to the high power and high capacity of electric vehicles and the steep production increase by electric vehicle manufacturers, sales of magnetic components are expected to grow rapidly."

High-efficiency magnetic materials are considered key material components that minimize energy loss and enhance power efficiency in electric vehicles and renewable energy sectors. Amogreentech was the first in Korea and the third in the world to develop these high-efficiency magnetic materials independently.