[Click eStock] "Sunic System, Key Beneficiary in the 8.6th-Generation OLED Market"

On October 15, Hanyang Securities analyzed that Sunic System is emerging as a key beneficiary in the 8.6th-generation OLED market. Lee Junseok, a researcher at Hanyang Securities, commented, "Sunic System, a deposition equipment company that had been overlooked, is now proving itself with tangible numbers."

Sunic System specializes in manufacturing deposition equipment, a core process in OLED display production, and was listed on KOSDAQ in 2017. OLED deposition equipment requires large-scale facility investment and long-term research and development, making it a highly advanced technology. Globally, only Sunic System and two Japanese companies are capable of mass-producing large-area equipment, forming an exclusive market.

In particular, Sunic System is the only company capable of producing equipment for all generations from the 6th to the 8.6th, and has secured major global panel makers such as Samsung Display, LG Display, and BOE as its main clients. Researcher Lee explained, "Based on its precision alignment technology, Sunic System has secured technological superiority. In the second quarter, revenue reached 190 billion won and operating profit was around 40 billion won, significantly exceeding market expectations."

The rapid shift in the investment focus of the OLED industry is also seen as a positive factor. Lee stated, "The investment focus in the OLED industry is quickly moving from the 6th generation (2016-2022) to the 8.6th generation (2023 onward)," and analyzed, "BOE would not have invested in deposition equipment without a clear rationale."

The 8.6th generation serves as core infrastructure for the expansion of IT OLEDs, such as for laptops and tablets. In particular, the Tandem OLED structure improves brightness, lifespan, and power efficiency by more than 20-30% compared to single-layer structures, making it a representative beneficiary technology amid growing demand for low-power displays in the AI PC era. Market research firm OMDIA projects that the IT OLED market will grow to about 100 million units by 2031 (CAGR +29%), which corresponds to demand for approximately 22 units of 8.6th-generation deposition equipment.

Lee noted, "Sunic System has secured orders for two units so far, which demonstrates both sustainability and scalability, not just a one-off achievement." He added, "Since 2021, the company has proactively developed 8.6th-generation equipment, expanding its proven precision alignment technology from the 6th generation, thereby ensuring both technological continuity and stability."

He further stated, "This competitive edge has led to orders from BOE, and Sunic System is also expected to benefit from the full-scale 8.6th-generation investments by Chinese panel makers such as Visionox, Tianma, and CSOT. Amid the structural growth of the IT OLED 8.6th-generation deposition equipment market, driven by expanding AI and IT demand, Sunic System is recognized as a key beneficiary with both technological prowess and reference projects."

Lee also highly evaluated Sunic System's competitiveness in the OLEDoS (silicon-based OLED) market. "With the spread of the metaverse and AI, OLEDoS, a core technology for next-generation AR and VR displays, is rapidly gaining traction, and Sunic System holds over 80% share of the global OLEDoS deposition equipment market," he said.

OLEDoS is a technology that implements ultra-small, high-resolution screens by depositing OLEDs onto silicon wafers instead of glass, requiring advanced processes such as precision alignment and uniformity control. Lee emphasized, "Sunic System not only has references for single-color (white) deposition, but also for FMM-based RGB three-color deposition, making it optimized for mass production of AR and VR devices. The company is also expected to directly benefit from policy-driven OLEDoS investment support by the Chinese government."

He projected, "Going forward, Sunic System will lead the microdisplay market for AR and VR, expand applications to automotive HUDs, and establish itself as a key supplier in the transition to next-generation displays."