Leading Investment & Securities analyzed on the 2nd that Abaco is expected to see performance growth as its secondary battery, organic light-emitting diode (OLED), and multilayer ceramic capacitor (MLCC) equipment diversify.
Abaco produces flat panel display equipment and is expanding its business areas to secondary battery equipment and MLCC equipment. The sales proportion by business division is 90.7% for secondary battery manufacturing equipment, 6.8% for LCD & OLED manufacturing equipment, and 2.5% for 3D printers and other sales.
Researcher Yuseongman of Leading Investment & Securities explained in the report on the same day, “Abaco is rapidly shifting its sales proportion from its existing main equipment, ‘Sputter (OLED TFT process equipment),’ to secondary battery ‘Roll-to-roll (key equipment for continuous production of electrode processes, maximizing the number of rolls needed for coating processes)’ and automation systems.”
Researcher Yuseongman analyzed, “This year, the sales proportion of secondary battery equipment is expected to account for more than 70% of total sales, driving Abaco’s growth and performance. In addition to existing automation equipment, there is a high possibility of new orders for ‘Electrode Roll Press’ equipment (which rolls electrode substrates coated with active material to a uniform thickness in the secondary battery process), enabling further growth of secondary battery equipment.”
He also reported, “In the display equipment sector, Abaco recently (in June) signed a supply contract for OLED vacuum deposition systems (equipment that protects masks and substrates and continues the process) with BOE Display Technology Company in Chengdu, China, and initial shipments and mass production are expected from the second half of this year.”
MLCC equipment is also expected to reflect sales starting next year after completing research and development. He said, “Abaco has completed the development of about 14 types of MLCC process equipment (including coating, printing, stacking, electrodes, measurement, and taping). Its affiliate ‘Abatech’ is planning to expand four MLCC lines in Gumi, Gyeongbuk, with deliveries scheduled for the second half of this year, and supply to a Chinese MLCC manufacturer (Company S) is also anticipated.”
He added, “The consolidated expected sales amount is 310.7 billion KRW, and operating profit is 23.7 billion KRW, representing increases of 66.3% and 437.6% compared to the previous year, respectively. Significant growth in sales and operating profit is expected due to the full-scale growth of secondary battery equipment, the recovery trend of display equipment in the second half, and the addition of new MLCC business.”
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