[Special Stock] Haesung Optics Expands Overseas Based on Overwhelming ESL Performance... Exclusive Mass Production Supply Agreement

Haesung Optics is showing strong performance. The news that it is officially launching a new business in electronic shelf labels (ESL) appears to be influencing its stock price. Haesung Optics has signed an exclusive mass production supply agreement with a domestic company, Company A, which is developing and operating ESL business. According to Industry Research, a system market research firm, the global ESL market size in 2022 was approximately $1.7 billion (about 2.28 trillion KRW) and is expected to grow at an average annual rate of 19.6% until 2030.

As of 2:10 PM on the 16th, Haesung Optics is trading at 1,502 KRW, up 9.0% from the previous day.

Haesung Optics explained that domestic supply quantities will be handled by its affiliate TKENS, while overseas supply quantities for Japan, Europe, and other regions will be mass-produced and supplied at Haesung Optics' Phu Tho factory in Vietnam. Among the domestic supply quantities, initial mass production products have been confirmed to have started production since last week.

According to the company, ESL holds differentiated competitiveness compared to competitors in terms of update speed, lifespan, waterproof and dustproof features, and central server performance through in-house design and development of electronic tags and AP equipment.

ESL is a small display device based on electronic paper display (EPD) technology. Utilizing IoT technology, when product information is changed on the central server, it is automatically reflected on each electronic shelf label through a gateway. It is an eco-friendly solution that can be used for more than 10 years solely with the product's own battery, without separate electrical wiring.

A Haesung Optics representative said, "With the full-scale mass production of ESL, sales growth is expected in the second half of this year and next year. We are also continuously investing in facilities and new technologies to secure competitiveness in our core business of smartphone OIS actuator business, aiming to strengthen our position within the industry."

Haesung Optics has completed factory expansion and relocation to supply TKENS' integrated moisture-proof kits for automotive electronics to domestic and overseas automakers. With full-scale mass production supply confirmed for this year, the company expects its performance growth to be maximized.