[Click eStock] "BMT, Balanced Growth Expected in Upstream Industries"

Yuanta Securities analyzed on the 7th that BM Tech is expected to experience steady growth across major front industries. No investment opinion or target price was presented.

BM Tech is a company that sells instrumentation fittings and valves to various industries (semiconductors, shipbuilding, petrochemicals, etc.). Myungjun Kwon, a researcher at Yuanta Securities, said, "From the second half of this year onwards, steady growth is expected within major front industries through new products and localization."

Researcher Kwon explained, "The front industry with the highest sales proportion is semiconductors," adding, "Along with the benefits from increased investments by domestic semiconductor companies in the second half of this year, sales growth through domestically produced products is also expected."

In the shipbuilding sector, performance growth is expected due to expanded orders. He stated, "The LNG carrier and LNG propulsion ship markets are expanding due to IMO2020," and "Domestic shipbuilding companies, which are BM Tech's clients, continue to secure orders for LNG carriers, and BM Tech's cryogenic valve products hold a high market share in LNG propulsion ships, so benefits are expected."

Additionally, sales growth toward the Middle East is also anticipated. He explained, "BM Tech holds vendor registrations for instrumentation and fitting valves with numerous major clients, and was registered as a vendor for Saudi Aramco in March 2022," adding, "Localization within Saudi Arabia for Middle East projects is also being promoted in a joint venture form with a local partner; the groundbreaking ceremony was held in April this year, and product production started at the end of this year, so it is expected to contribute significantly to sales growth starting next year."