[Click e-Stock] "Mplus Delivers Differentiated Results... Prismatic Investment Benefits Also in Focus"

On August 22, Kiwoom Securities analyzed that Mplus has attracted investor attention by delivering differentiated results in the first half of the year.

Mplus achieved sales of 82.8 billion KRW and operating profit of 14.6 billion KRW in the first half of this year, representing increases of 105% and 957%, respectively, compared to the same period last year. Oh Hyunjin, a researcher at Kiwoom Securities, explained, "This was due to the reflection of high-margin backlogs from previously secured orders in sales," and added, "The increase in the proportion of sales from high-profit overseas clients, achieved through turn-key orders and other means, also contributed to the improvement in profitability." In fact, the proportion of sales from major domestic clients decreased from 50% last year to 30% in the first half of this year.

The growth visibility of Mplus is further increasing through the expansion of new orders. The amount of new orders in the first half reached 78.1 billion KRW, already surpassing last year's annual order volume. Researcher Oh stated, "Despite uncertainties in the battery market, the factors enabling growth are Mplus's technological competitiveness and the resulting expansion of its client base," and evaluated, "Since developing the world's first assembly process line for EV secondary batteries, the company has established more than 80 assembly process lines."

In addition to its existing business focused on pouch-type batteries, Mplus is actively responding to the increasing demand for prismatic battery equipment. Researcher Oh emphasized, "Beyond its core revenue source of pouch-type assembly process equipment, Mplus also holds a strong position in the market for manufacturing prismatic assembly process equipment," and added, "Expanding its client base through newly developed equipment, such as the recently launched 600PPM ultra-high-speed notching equipment, will further solidify its market position."

Full-scale orders for prismatic equipment are expected in the second half of this year. Accordingly, Mplus’s performance for this year is projected to reach sales of 170.9 billion KRW and operating profit of 23.3 billion KRW, increases of 33% and 131%, respectively, compared to last year. Researcher Oh added, "Given clients’ investment plans, the full-scale expansion of prismatic orders after 2026 is expected to drive the company’s mid- to long-term earnings growth," and noted, "Despite the recent rebound in share price, the current price is significantly undervalued at a 2024 price-earnings ratio (PER) of 6.5 times."