On the 23rd, SK Securities assessed YM Tech as a specialized manufacturer of EV relays with expected structural growth.
YM Tech is a specialized manufacturer of EV relays, which are essential components installed in secondary batteries. EV relays are key parts that turn the battery's power and charging functions On/Off and are mainly used in ESS, electric vehicles, electric vehicle chargers, and solar inverters.
As of the end of last year, YM Tech's sales distribution by application was 45% ESS, 25% electric vehicle chargers, 10% commercial vehicles, and 20% others. By region, sales distribution was 45% Greater China, 20% Europe, and 35% domestic, with overseas sales accounting for more than 65%.
Researcher Heo Seon-jae of SK Securities analyzed, "Currently, it is important to focus on the expansion of EV relay sales for electric vehicle charger operators, which are expected to experience structural growth in the future, and the preparation status for new supply to (passenger) electric vehicles."
Researcher Heo explained, "Globally, there is a shortage of electric vehicle charging infrastructure, and major countries are announcing aggressive plans to expand electric vehicle chargers. In a situation where competition in the electric vehicle charger market is expected to intensify, the company has already secured numerous domestic and international electric vehicle charger manufacturers such as SK Signet, Daeyoung Chaebi, and ABB as clients, so it is judged to directly benefit from the growth of the front-end market."
He also stated, "Domestic and international electric vehicle manufacturers are switching the voltage standard system from the current 400V to 800V to shorten charging time, and in this process, the supply of the company's EV relay products to finished car manufacturers will begin. The second plant to respond to electric vehicle volumes is scheduled to start construction in the fourth quarter of this year and be completed in the first half of next year, with production capacity estimated to increase by at least five times compared to the existing first plant, reaching about 400 billion KRW."
He projected, "This year's expected sales and operating profit are about 60 billion KRW and 15 billion KRW, respectively," and forecasted, "With the start of EV relay sales for electric vehicles, which are expected to significantly expand Q in the mid-to-long term, the company will enter a full-scale growth phase."
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