[Click e-Stock] "Airrain, Supplier Advantage... Surging Demand"

On October 29, Korea Investment & Securities analyzed that Airrain, as a global oligopoly player in gas separation membranes, is expected to continue its high growth trajectory. The company did not provide an investment opinion or target price.

Airrain is a company specializing in gas separation membranes, established in 2001. Gas separation membranes separate mixed gases such as nitrogen, methane, and carbon dioxide (CO2) into high-purity components by passing them through tubes thinner than a strand of hair. They are mainly used in nitrogen generation (to prevent explosions and oxidation), biogas upgrading, and carbon dioxide capture (CCUS).

In the first half of this year, Airrain recorded sales of 14.9 billion KRW and operating profit of 2.3 billion KRW, representing increases of 56.7% and 235.1%, respectively, compared to the same period last year. Yoon Cheolhwan, a researcher at Korea Investment & Securities, stated, "System sales were recognized all at once upon project completion, and a surge in module shipments due to capacity expansion at the beginning of the year led to a surprise performance. It is encouraging that both customer diversification and new orders were achieved simultaneously, based on excess demand in the global gas separation membrane market."

He also predicted that performance improvement would continue. Korea Investment & Securities forecasts that this year, Airrain's sales and operating profit will reach 35.6 billion KRW and 4.9 billion KRW, respectively, up 45.3% and 160.4% from the previous year. He explained, "Despite the absence of system sales in the second half, the company's overall scale will grow significantly, driven by strong growth in the module segment."

In addition, the effects of capacity expansion are also expected to become apparent. He said, "With the expansion of the Ochang plant, annual production capacity (CAPA) has increased from 20,000 to 40,000 units starting in 2025, and the utilization rate has risen to as high as 95%. In August, the company acquired a 16,000-square-meter factory (Cheongju) from SK IET. Cheongju Plant 2 is scheduled to begin operations in February 2026 after remodeling and expanding production facilities." He added, "From 2026, the era of 60,000 units in annual CAPA will begin."

He noted, "In terms of profitability, an increase in SG&A expenses (maintenance costs and depreciation) is expected due to capital expenditures (CAPEX). However, with the end of stock compensation expenses, profitability is projected to improve by 6.1 percentage points compared to the previous year."