[Click eStock] V1Tech, Beneficiary Stock from Secondary Battery Equipment Investment... "Performance Recovery in Second Half"

Mirae Asset Daewoo Report
Expectations for Expansion of Orders in Secondary Battery and Display Inspection Equipment

[Asia Economy Reporter Minji Lee] Mirae Asset Daewoo stated on the 24th that V1 Tech may show a recovery in performance in the second half of the year due to increased orders for medium-to-large secondary batteries and display inspection equipment. No investment opinion or target price was provided.

V1 Tech is a company that manufactures LCD and OLED pressure mark and align inspection equipment, as well as secondary battery inspection systems. As of the first quarter of this year, the sales composition ratio was 80.2% from secondary battery inspection systems and 17.5% from LCD and OLED pressure mark inspection devices, with secondary battery inspection equipment accounting for the overwhelming majority of sales. Sales of secondary battery inspection systems in the first quarter of this year increased by 109.9% compared to the same period last year, while sales of LCD and OLED pressure mark inspection devices decreased by 48.8% compared to one year ago.

Researcher Jaehun Kim of Mirae Asset Daewoo explained, "This is due to the investment cycle of the customer's facilities," adding, "Investment in facilities by secondary battery customers has increased, but investment in displays by domestic customers has significantly decreased."

In the second half of the year, V1 Tech is expected to see increased orders due to facility investments in medium-to-large secondary batteries by domestic customers and orders for pressure mark inspection devices due to OLED investments by large Chinese display companies.

New orders for secondary battery inspection systems increased by 322% quarter-on-quarter to 9.7 billion KRW in the fourth quarter of last year. Although new orders in the first quarter of this year decreased to 5 billion KRW compared to the previous quarter, the trend of increasing orders was maintained. The disclosed order amount related to secondary batteries in the second quarter of this year is 4.1 billion KRW, so the total new order amount is expected to exceed that of the first quarter.

The display inspection equipment segment is also expected to show a recovery in orders. This is because large Chinese panel manufacturers such as BOE, CST, and Tianma have planned supplementary investments in LCD and expansions of new OLED lines.

Researcher Kim said, "Facility investments by major customers of secondary battery inspection systems will continue to expand until 2022," adding, "Since the delivery time for inspection devices is short, about 3 to 6 months, a significant portion of orders in the second half of the year will be recognized as current period sales."

He continued, "Performance recovery will accelerate in the second half of the year when the investment cycles of customers in both secondary batteries and displays arrive," and assessed, "The current corporate value level does not seem to reflect expectations for performance recovery."

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