[Click eStock] "Javis, Demand Up Due to High Growth in Upstream Industries"

[Asia Economy Reporter Eunmo Koo] IBK Investment & Securities expects that Jarvis will achieve improved performance compared to last year, as the front-end industry experiences high growth and demand for X-ray inspection equipment continues to increase.

Jarvis is a specialized manufacturer of X-ray inspection equipment that performs internal inspections of electronic components and detects metallic and non-metallic foreign substances in food. In April last year, it formed a strategic partnership with Japan's RICOH and secured an investment of 3.3 billion KRW (currently holding a 9.12% stake, making RICOH the second largest shareholder). In November last year, Jarvis was listed on the KOSDAQ market through a SPAC merger. As of last year, its sales composition was divided into 57% from ‘Xscan’ (semiconductors, secondary batteries, PCBs, etc.), 30% from ‘Fscan’ (food foreign substance inspection), and 13% from others.

Minhee Lee, a researcher at IBK Investment & Securities, stated in a report on the 8th, “Due to environmental regulations and aggressive expansion of electric vehicle lineups by existing automakers, global demand for secondary battery inspection equipment is expected to experience high growth.” He added, “Previously, Jarvis mainly supplied ultra-small cylindrical secondary battery inspection equipment for wireless earphones from Company A, but from this year, opportunities to supply to Chinese customers and medium-to-large batteries are expected.”

The researcher further analyzed, “In the case of Fscan, the equipment for inspecting metallic and non-metallic foreign substances in food, steady market growth is expected due to increasing social interest in food safety and health.” Jarvis holds one-third of the domestic market.

This year’s performance is expected to follow a pattern of strong first half and weaker second half due to the impact of COVID-19. The researcher said, “At the beginning of the year, Jarvis had many sales growth factors such as expanding new Chinese clients in the secondary battery sector and entering the Japanese food inspection equipment market through RICOH, so it expected sales to grow about twice compared to the previous year. However, due to the impact of COVID-19, except for Fscan, the first half performance is not expected to improve compared to the same period last year.”

However, the researcher forecasted, “Exports to China and Japan are expected to be in full swing in the second half, and this year’s performance will clearly show a strong first half and weaker second half trend.” He projected, “Jarvis’s sales this year are expected to reach 19.6 billion KRW, a 15% increase from the previous year, and it will surpass the break-even point in the second half.”

This content was produced with the assistance of AI translation services.