[Click eStock] "Sewon, Beneficiary of Green New Deal Policy... Positive Growth in Electric and Hydrogen Vehicles"

[Asia Economy Reporter Jang Hyowon] On the 18th, KB Securities analyzed that Sewon is expected to benefit from the Green New Deal policy and the growth of electric and hydrogen vehicles. No investment opinion or target price was provided.

Researcher Lim Sang-guk of KB Securities stated, “Sewon is expected to benefit from the growth of eco-friendly vehicles such as electric and hydrogen cars,” adding, “Growth is anticipated through diversification of air conditioning system parts for eco-friendly vehicles such as electric and hydrogen cars, including header condensers and battery chillers, which were previously used in internal combustion engines. Sewon supplies header condensers to Hyundai’s electric and hydrogen vehicles such as Kona, Ioniq, and Nexo, and also supplies some parts to Tesla.”

Sewon is a secondary parts manufacturer producing automotive air conditioning components such as header condensers and evaporators, with clients including Hanon Systems and DENSO. Additionally, Sewon holds a 51% stake in its subsidiary Trinotech, a non-memory power semiconductor company that succeeded in domestic development of next-generation non-memory (SiC) semiconductors. Trinotech, Sewon’s subsidiary, is preparing for an initial public offering (IPO) and signed an underwriting contract on the 4th.

He said, “If next-generation SiC power semiconductors expand for automotive electronics in the future, they are expected to emerge as a strong growth driver,” adding, “Electric vehicles are equipped with more than twice the amount of power semiconductors compared to internal combustion vehicles, and quantitative growth is expected with expansion into automotive electronics.”

He continued, “Growth is expected through diversification of sales channels as a global parts supplier and the full-scale operation of the Mexico plant. Customers are diversifying to include Bosch, DENSO, and Gates, and cost competitiveness is expected to improve through the operation of the Mexico plant since 2020.”

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