[Click eStock] "Nano, Benefiting from ESG Management Expansion... Expected to Turn Profitable This Year"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 13th that Nano is expected to benefit from the expansion of ESG management. No investment opinion or target price was provided.

Nano is an environmental specialized company that produces everything from the material (TiO2) for denitrification catalysts that remove nitrogen oxides, which are air pollutants, to filters. Nitrogen oxides are major causes of fine dust and are generated when fossil fuels are burned. Nano is the No. 1 domestic market share (M/S) company for SCR catalyst filters, supplying to thermal power plants, industrial boilers, plants, incinerators, and ships.

Jae-yoon Kim, a researcher at KTB Investment & Securities, explained, "The catalyst filter market is inevitably greatly influenced by environmental policies," adding, "Currently, due to the government's fine dust reduction policies, IMO (International Maritime Organization)'s nitrogen oxide regulations for ships, and nitrogen oxide regulations for thermal power plants, the demand for Nano's SCR catalyst filters is continuously expanding."

He also expected benefits from the expansion of ESG management. He said, "Not only regulations but also the expansion of ESG management by companies will directly benefit Nano," adding, "To prevent global warming, it is essential to reduce not only carbon dioxide emissions but also nitrogen oxides, which are known to be air pollutants with a greenhouse effect 300 times stronger than carbon dioxide." He continued, "In fact, large companies from various industries such as POSCO, Samsung Engineering, and Lotte Chemical have been investing in nitrogen oxide reduction since 2021."

He forecasted that since nitrogen oxide reduction is necessary across all industries, Nano's SCR catalyst filter market will also rapidly expand. Researcher Kim emphasized, "Although last year's performance was sluggish, a turnaround is expected in 2021," adding, "Due to the impact of COVID-19 in 2020, the Chinese TiO2 production corporation and the Spanish subsidiary (Nano Automotive) recorded losses, resulting in a consolidated operating loss, but this year, with the turnaround of the Chinese corporation and exclusion of the Spanish subsidiary from consolidation (equity sale), a consolidated operating profit turnaround is expected."

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