[Special Stock] Isak Engi Soars 12x in 3 Years, Jointly Developing Ultra-High Voltage Power Equipment Prevention with Hyundai Elec

Isak Engineering is showing strong performance. With the growth of the artificial intelligence (AI) data center industry, concerns about power shortages are increasing. As power industry efficiency has become a global issue, investments in related sectors are rising, which is expected to benefit Isak Engineering. By analyzing status information through sensors and comprehensive system data, it can assess equipment conditions 24 hours a day and prevent failures in advance. Isak Engineering jointly developed a power equipment preventive diagnosis solution with HD Hyundai Electric. The jointly developed diagnostic sensors and solutions are installed in HD Hyundai Electric products. Hyundai Electric's stock price has steadily trended upward since 2021, increasing about 12 times over three years.

As of 9:54 AM on the 24th, Isak Engineering was trading at 14,560 KRW, up 810 KRW (5.89%) compared to the previous trading day.

They are also promoting digital transformation projects utilizing industrial Internet of Things (IoT) and AI technologies. They are attempting to integrate technologies across various fields, from traffic volume analysis using AI to optimal control of power production in offshore wind power generation. The ultra-high voltage power equipment preventive diagnosis business is also expected to enter full-scale operation this year.

Jo Seok, CEO of HD Hyundai Electric, recently stated in an interview with the media, "In the U.S., there is a surge in demand for new power grid installations and replacement of aging power grids due to renewable energy, but supply capacity is insufficient." He added, "We were able to secure orders at favorable prices because supply could not keep up with demand, to the extent that transformers needed in 2030 were pre-ordered." He further said, "Based on achievements in all power sectors, especially in ultra-high voltage transformers and circuit breakers where we have strengths, we need to expand into the distribution sector to establish a foundation for stable operations."

Since electricity goes through transformation and distribution processes after transmission before reaching demand points, growth in the transmission and transformation market inevitably spreads to the distribution market. HD Hyundai Electric is constructing a medium- and low-voltage circuit breaker factory in Cheongju, aiming for completion in October this year. They plan to actively target the global distribution equipment market.

Isak Engineering is advancing commercialization with the goal of entering the ultra-high voltage power equipment preventive diagnosis solution market. If an accident occurs at substations, which are the starting points of power supply in various regions nationwide, the damage caused by power outages is enormous. The ultra-high voltage power equipment preventive diagnosis solution market currently uses imported preventive diagnosis solutions. Isak Engineering has independently developed multiple sensors and analysis devices and supplies them to Hyundai Electric as OEM products. They have completed the development of preventive diagnosis sensors as a project with the Korea Electric Power Research Institute and Hyundai Electric. Additionally, they are commercializing three types of gas analyzers through technology transfer from the Korea Electric Power Research Institute.

For private companies owning ultra-high voltage power equipment, demands for failure prevention are increasing. In large factories such as Samsung Electronics and SK Hynix, power outages caused by failures result in massive revenue losses. Isak Engineering proposes the introduction of power equipment preventive diagnosis systems to major customers including SK Hynix, Hyundai Steel, POSCO, Hyundai Motor Company, and Hyundai Heavy Industries. Starting with references in the Korea Electric Power Corporation market, they aim to expand into the civilian market.

Isak Engineering supplies control systems for critical semiconductor process equipment such as HVAC, GAS, and UPW, with SK Hynix as a major customer. They explained that in the main utility control system sector of their key customer SK Hynix, they hold a monopolistic position, while Hyundai Steel, POSCO, Dongbu Steel, and Samsung Engineering are competing with foreign companies.