[Click eStock] "Atom Secures New Growth Engines by Entering 168 Trillion KRW Shipbuilding and Defense Industries"

On May 14, independent research firm ValueFinder analyzed that Atom has secured new growth engines by acquiring a 50% stake in DST, a subsidiary of Dongsung Heavy Industries, which manufactures ship engine cylinders, thereby entering the shipbuilding and defense industries.

Atom is a small transformer manufacturer that was listed on the KOSDAQ market in 2023 through a technology special listing. The company produces and sells TA transformers used in portable smartphone chargers and TV transformers used in televisions. Atom holds approximately a 70% market share in 25W transformers and is the exclusive supplier of 45W fast chargers for smartphones to Samsung Electronics.

Lee Choongheon, a researcher at ValueFinder, stated, "Atom has completed the development not only of TA and TV transformers but also of automotive transformers, which require a high level of technical expertise." He added, "Atom's strength lies in its patented laminated coil technology, which reduces heat generation and volume, giving it a technological edge. Supply, which had been delayed, to subsidiary A of a global automaker is expected to be registered as a client within the first half of the year."

He continued, "Atom’s specialized transformers for data centers can also be applied to server computers and power supplies for server PCs in data centers, helping to solve heat generation issues." He further noted, "The time to reach 90 degrees is about 34 minutes, which is roughly twice as long as competitors, indicating a technological advantage."

Additionally, it was analyzed that entry into the shipbuilding and defense industries has also provided new growth engines. The global shipbuilding industry market size is expected to grow from $118.2 billion (about 168 trillion KRW) in 2023 to $174.2 billion (about 247 trillion KRW) in 2032, with an average annual growth rate of 4.4%.

He explained, "DST, which Atom acquired, currently counts HD Hyundai Heavy Industries, HD Hyundai Marine Solution, and STX Engine as its main clients. DST supplies cylinders for HiMSEN engines to HD Hyundai Heavy Industries, with a market share of about 70%, making it the top supplier. For HD Hyundai Marine Solution, DST not only supplies cylinders for HiMSEN engines but also exclusively supplies 100% of the A/S volume."

In addition, DST supplies engine cylinders for the K9 self-propelled howitzer and K10 armored vehicle to STX Engine. Last year, DST recorded sales of 66 billion KRW and an operating profit of 2.9 billion KRW, continuing its steady growth trend.