[Click eStock] "Solum, ESL Orders Worth 1.65 Trillion Won... Profitability Improvement"

Hanyang Securities analyzed on the 14th that SoluM's electronic shelf label (ESL) market is still in its early stages and expects performance growth this year.

Lee Jun-seok, a researcher at Hanyang Securities, stated in a report on the same day, "SoluM experienced rapid growth until last year due to the growth of ESL, and this year plans to focus on improving profitability," adding, "Sales of power modules will expand through the increase in power modules for EV chargers, diversification of sales channels for TV SMPS, and expansion of overseas smart streetlight business, which will enhance profitability."

He explained, "The ICT division, which includes ESL, is expected to achieve sales of 950 billion KRW this year," and added, "This estimate is based on the ESL order amount of 1.65 trillion KRW as of the fourth quarter of last year, and if the contracts currently under discussion are completed in the first half of the year, additional sales can also be expected."

He analyzed that the ESL market is still in its early stage. In April last year, ViewZon Group, the global No.1 ESL company, signed a large-scale order contract with Walmart. This contract indicates that ESL is becoming essential in the retail industry.

He said, "As a chain effect of this, SoluM, the global No.2 ESL company, also has a high possibility of signing large-scale order contracts with global retailers," and added, "As of the end of last year, bidding with about 40 companies supports this."

He forecasted, "Currently, the global penetration rate of ESL is only 10%," and explained, "Companies are increasingly adopting dynamic pricing, which flexibly adjusts prices based on competitors' prices, product demand and supply, and market environment, so the penetration rate of ESL is expected to rise further."