Jeil M&S "Leading Technology Mixing Equipment Expands into Various Industries"

Specialized Company in Secondary Battery Mixing Equipment
Order Backlog of 303.3 Billion KRW in 2023... "Expected Sales of 348.7 Billion KRW This Year"

"Jeil M&S will continue to achieve high growth by advancing mixing design technology and expanding into various industries."

Lee Young-jin, CEO of Jeil M&S, is seen making a presentation at the IPO press conference held at 63 Square, Yeouido on the 11th. Photo by Yoo Hyun-seok

On the 11th, Lee Young-jin, CEO of Jeil M&S, announced the company's goals following its KOSDAQ listing at an IPO press conference held at 63 Square in Yeouido.

Jeil M&S was founded in 1981 as Jeil Gikong and converted into a corporation in 1986. It is the first specialized mixing equipment company in Korea. With over 40 years of technology and experience, the company started by supplying specialized equipment for the food and pharmaceutical industries and has since expanded its business areas to secondary batteries, defense, and chemicals.

Its core competencies include △blade design △technology capable of mixing all types of materials △comprehensive engineering solutions. Notably, in 2007, it succeeded in the domestic localization and commercialization of secondary battery mixing equipment for the first time in Korea.

Based on this, the company passed rigorous process tests and domestic and international certifications from key clients, proving its high competitiveness. It also customizes solutions to meet the material and process characteristics of its clients and proactively secures certifications for clients' overseas expansions, maintaining strong competitiveness.

CEO Lee Young-jin emphasized, "Environmental regulations vary by country. We provide tailored services not only to meet customer needs but also to suit the specific regions."

Leveraging such competitiveness, Jeil M&S has grown rapidly. Sales increased from 82.5 billion KRW in 2021 to 143.173 billion KRW last year. Operating profit also rose from 950 million KRW to 1.763 billion KRW during the same period. A key factor in this rapid growth was the Swedish battery manufacturer Northvolt, which became a client of Jeil M&S in 2020.

However, debt also increased during this process. As of last year, the debt ratio stood at 345.65%. The company explained that this was inevitable due to the nature of the industry. CEO Lee explained, "Our sales are finalized based on delivery, but until then, we have to operate with contract deposits. As contracts increase, debt naturally rises."

The company projects sales of 348.732 billion KRW this year, a 143.57% increase compared to the previous year. The order backlog serves as the basis for this projection. As of the end of last year, the order backlog was 303.3 billion KRW, up 155% year-on-year. CEO Lee stated, "Orders are not concentrated with a single company. Sequential sales realization is expected from ongoing projects."

A company representative emphasized, "Our equipment is used at the very beginning of the battery manufacturing process, which means the likelihood of sales realization is high."

Jeil M&S expects growth as major cell makers actively expand their production capacity (CAPA). The company also plans to diversify its client base by securing global automakers aiming to produce batteries in-house as new clients. Alongside this, it will continue market responsiveness through advanced research and investment plans. It intends to develop △automated mixing processes △continuous mixing processes △dry process mixers to secure high competitiveness through advanced mixing design capabilities.

Additionally, the company plans to expand into various fields. CEO Lee said, "We will strengthen the aerospace industry sector based on our mixer technology and enter new fields such as material processing based on our secondary battery mixing process references."

Jeil M&S will issue 2.4 million new shares in this IPO. The expected offering price ranges from 15,000 to 18,000 KRW, with a total offering amount between 36 billion and 43.2 billion KRW. The company plans to allocate 29.58 billion KRW of this to debt repayment, with the remaining 6.2 billion KRW used for operating funds.

The demand forecast will be conducted over five days from the 5th to the 12th of this month. General subscription will take place on the 18th and 19th, aiming for a KOSDAQ listing within April. KB Securities is the lead underwriter.