Hansong Neotec Emerges as Sole Supplier of Large OLED Tensile Machines... Expectations for Stronger H2 Performance Increase

[Asia Economy Reporter Jang Hyowon] Organic Light Emitting Diode (OLED) equipment manufacturer Hansong Neotek is drawing attention as to whether it can lead a significant performance increase in the second half of the year, leveraging its strong references in the large OLED sector.

According to industry sources on the 6th, LG Display is expected to announce an expansion of large OLED production in the third quarter due to strong sales of White OLED (WOLED).

Currently, in the large OLED industry, LG Display holds a global monopoly position, while Chinese display manufacturer BOE is in pursuit of LG Display.

The increase in investments by front-end companies such as large OLED equipment expansion is analyzed to lead to an increase in orders for Hansong Neotek. Both LG Display and BOE are customers of Hansong Neotek.

Hansong Neotek holds a domestic patent for the "organic evaporation and encapsulation mask frame assembly for WOLED panel production, its manufacturing method, and manufacturing device." A Hansong Neotek official stated, “We possess the world's only large OLED reference.”

In fact, Hansong Neotek's current order backlog is approximately 15 billion to 20 billion KRW, exceeding last year's total sales.

Additionally, the investment cycle for small and medium-sized OLEDs, which was delayed last year due to COVID-19, is expected to return, which is also favorable for Hansong Neotek.

A financial investment industry official said, “Hansong Neotek experienced explosive growth in sales from 25 billion KRW to 62 billion KRW during the small and medium-sized OLED expansion cycle from 2015 to 2018,” adding, “Since large equipment is about 20-30% more expensive than existing small and medium-sized equipment, this WOLED cycle is expected to be larger than the past small and medium-sized OLED cycle.”

Furthermore, Hansong Neotek is preparing to enter the secondary battery equipment market. Recently, due to battery explosion accidents, the frequency and intensity of inspections after battery production are increasing, and Hansong Neotek plans to produce AI-based inspection equipment utilizing big data.

DB Financial Investment researcher Eo Gyu-jin forecasted, “With the resumption of OLED investments delayed by COVID-19 in 2020, growth in the core business is expected, and the entry into the secondary battery business will mark a year of transformation by preparing mid- to long-term growth engines.”

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