Hanyang Securities analyzed Y2Solution on the 20th as a hidden gem in the electric vehicle charger theme.
Y2Solution is a company primarily engaged in the development and manufacturing of power supply units (PSUs). PSUs are essential products used in most electrical and electronic devices such as TVs, PCs, and IT equipment. As of the first half of this year, PSUs for displays account for 89.2% of sales, with most being supplied to LG Electronics.
Recently, market share within LG Electronics has expanded, and it is expected to contribute to performance. Y2Solution is diversifying its product portfolio with technologies accumulated over many years, including PSUs for electric vehicle chargers. Additionally, the company established Luxa Biotechnology and is currently conducting Phase 1/2a clinical trials for the treatment of dry age-related macular degeneration.
Researcher Lee Joon-seok of Hanyang Securities stated, “Y2Solution recently developed a 30kW electric vehicle charger PSU, which is expected to benefit from the NEVI program under the Biden Infrastructure Act,” adding, “This program plans to invest $5 billion by 2030 to install 500,000 chargers across the United States.”
Subsidies cover up to 80%. The core of the charger is the power supply unit (PSU). Although Chinese companies have a high market share, due to the US-China conflict, Y2Solution’s highly advanced PSU technology is expected to gain new attention. In fact, Y2Solution recently signed a business agreement with a US company for local manufacturing of electric vehicle charger power modules in the US. This is described as the final preparation stage before the NEVI program is fully launched, raising expectations for the company’s advancement within the US market.
Researcher Lee Joon-seok conveyed, “Y2Solution’s investment points are ▲expansion of market share for display PSUs supplied to LG Electronics ▲supply of self-developed EVC PSUs in full scale starting next year under the NEVI Program ▲expectations for licensing-out (L/O) and mergers & acquisitions (M&A) based on Luxa Bio’s clinical data for dry age-related macular degeneration.”
While the electric vehicle charger PSU business holds the greatest expectations, the display PSU segment is also expected to positively impact performance due to rising market share within LG Electronics.
He further predicted, “Moreover, if meaningful results emerge from the bio business division, Y2Solution’s stock price will enter a new phase.”
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