[Click eStock] "Korea FT, a Beneficiary Company of the Electric Vehicle Chasm"

On the 13th, Korea Investment & Securities forecasted that Korea FT, an eco-friendly automobile parts company, will benefit from the temporary demand stagnation (chasm) in electric vehicles (EVs).

[Image source=Yonhap News]

Changho Kim, a researcher at Korea Investment & Securities, stated, "Global automakers, including Hyundai Motor Company, are expanding the production of hybrid electric vehicles (HEVs) in response to delays in electrification," adding, "The prolonged EV chasm will act as an opportunity factor for Korea FT's main product, the HEV-specific canister (carbon filter), leading to increased sales."

Korea FT produces and supplies automotive interior parts such as eco-friendly canisters, plastic filler necks, and sunshades. Currently, it exclusively supplies canisters to Hyundai Motor Group. The canister is an eco-friendly fuel component that uses activated carbon to capture evaporative gases inside the fuel tank. With rapid growth in HEV-specific canister sales, the company recorded sales and operating profits of 680 billion KRW and 33.9 billion KRW last year, up 21% and 71%, respectively.

Researcher Kim predicted, "Considering the increase in canister sales, mixed production at Hyundai Motor Group's electric vehicle plant in Georgia, USA (HMGMA), and Kia's raised HEV sales targets, Korea FT is expected to enter an additional phase of external growth driven by global automaker orders."

He pointed out, "Looking at Korea FT's global original equipment manufacturer (OEM) order volume increasing by 66% compared to the previous year, it can be seen that delivery requests from global automakers are pouring in," adding, "The development of HEV engines by automakers is also a factor boosting order momentum."