[Click eStock] "Atom Grows with Electric Vehicles and Data Centers... Operating Profit Expected to Reach 15.3 Billion KRW Next Year"

On December 26, Hana Securities analyzed that Atom is entering a new phase of growth, centered on electric vehicles and data centers. The company is accelerating the diversification of its upstream industries by moving away from its traditional focus on mobile electronic devices and home appliances, leveraging its proprietary high-output and lightweight transformer technology.

Han Yugun, a researcher at Hana Securities, explained, "Atom is a company that manufactures transformers, which are key to miniaturization, high efficiency, and improved output." He added, "While transformer manufacturing is its main business, the company also engages in MLCC distribution and internal combustion engine parts businesses." Atom's business divisions consist of transformer manufacturing, MLCC and IC distribution, and ship and machinery parts. Transformers are produced at the domestic headquarters and the Vietnam subsidiary, while MLCC distribution is handled by the subsidiary Cheonghan Electronics.

At the beginning of this year, Atom expanded into the shipbuilding market by acquiring management rights of DST, a company specializing in ship engine parts manufacturing, for approximately 15 billion KRW. Han noted, "By incorporating DST as a subsidiary, Atom expanded its business portfolio into the shipbuilding market, and in 2026, it is expected to achieve visible results by entering the data center, electric vehicle, and defense markets." As of the third quarter of this year, the sales breakdown was 15% from transformers, 47% from MLCC and IC distribution, and 38% from ship and machinery parts.

The main driver of Atom's mid- to long-term growth is expected to be planar transformers. Conventional wound transformers faced structural limitations such as mass production constraints, low yield rates, and large size and weight. However, as demand for high-output and lightweight products increases in the electric vehicle and data center sectors, the market environment is rapidly changing.

Researcher Han assessed, "Recently, as downstream industries increasingly demand high output and lightweight solutions, the growing need for planar transformers that can address these requirements is expected to drive the company's growth."

Atom has already secured a high market share in the 15W and 25W planar transformer segment for electronic devices. In addition, the company has successfully developed new products, including lightweight OBC transformers, LDC transformers, and SPMS, by applying its molding 'secondary coil' technology.

Han explained, "Discussions are underway with global companies both domestically and internationally, and as product specifications and pricing become more concrete, Atom is expected to officially enter the electric vehicle and data center markets in 2026." In particular, these products have a higher ASP compared to existing ones, so expanding shipment volumes is expected to have a significant impact on performance improvement.

Technological competitiveness and improved production efficiency are also cited as key factors for performance growth. Atom has established technological entry barriers based on its proprietary technologies, such as primary and secondary molding coils, and is expanding its supply scope to not only major domestic companies but also global clients. Han evaluated, "Securing new customers, upgrading existing businesses to higher specifications, and the effect of incorporating DST as a subsidiary will work together to enable simultaneous growth in both scale and profitability."

Hana Securities forecasts Atom's sales to reach approximately 140 billion KRW in 2025 and 195 billion KRW in 2026. The introduction of automated production lines at the Vietnam plant is also expected to improve productivity and reduce costs.

Han emphasized, "With improved profitability from the adoption of automated facilities, operating profit in 2026 is expected to increase by 159% year-on-year to about 15.3 billion KRW," adding, "High-value transformers for electric vehicles and data centers will be the core products driving performance growth."