[Featured Stock] Samki, High-Quality Electric Vehicle Motor Housing Production Platform... Expected Benefits from LG Electronics Joint Venture

[Asia Economy Reporter Hyungsoo Park] In the domestic stock market, secondary battery and electric vehicle parts stocks are collectively strong due to growth expectations for electric vehicles. Samki, which received approval from the Ministry of Trade, Industry and Energy for the business restructuring of motor housing for electric vehicles (entry into eco-friendly vehicles), is also showing a steep upward trend recently.

As of 1:26 PM on the 4th, Samki is trading at 5,230 KRW, up 12.47% from the previous trading day. During the session, the stock price rose to 5,500 KRW, setting a new 52-week high.

Earlier, Samki announced on December 29 last year that the Ministry of Trade, Industry and Energy approved the business restructuring plan for motor housing for electric vehicles.

The company explained, "In accordance with the enforcement of the Special Act to Revitalize Corporate Vitality, we applied for approval of the business restructuring plan to the Ministry of Trade, Industry and Energy," and added, "We received approval from the review committee."

It further stated, "The business restructuring involves utilizing the existing high-pressure casting technology to establish a high-quality production platform for electric vehicle motor housing," and "It aims to officially enter the electric vehicle parts market and add a new sustainable growth business."

It added, "This will contribute to creating sustainable future growth engines and the expansion of electric vehicle adoption."

LG Electronics recently decided to establish a joint venture with Magna International, the world's third-largest automotive parts manufacturer based in Canada. The joint venture, set to launch in July this year, will target the electric vehicle (EV) powertrain market, including automotive motors and inverters. There is speculation that the joint venture may supply powertrains for Apple EVs.

One of the reasons Magna invested 500 billion KRW in LG Electronics and established the joint venture is reportedly due to LG’s technological capabilities in motors. LG Electronics has been continuously supplying motors for electric vehicles since around 2010.

Last month, Samki’s subsidiary Samki EV raised 10 billion KRW through a third-party allotment paid-in capital increase. Samki EV was established last October through a spin-off from Samki to focus on core businesses related to electric vehicle batteries and other related fields. Samki has supplied motor housing for electric vehicles to LG Electronics.

Samki EV’s main products are electric vehicle battery module components. Sales grew from 10.1 billion KRW in 2019 to a cumulative 24.4 billion KRW by the third quarter of last year.

A company official said, "The market has positively evaluated Samki’s growth potential in the electric vehicle battery module business," and added, "The investment funds will be used as necessary resources to expand related businesses."

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