[Click eStock] "Senko, Expected Benefits from Expanded Safety Regulations"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed on the 22nd that Senko is expected to benefit from the expansion of safety regulations. No investment opinion or target price was provided.

Senko is a specialized manufacturer of industrial gas sensors. It holds the only domestic electrochemical gas sensor technology. Based on its core sensor technology, the company has expanded its business to sensor devices and environmental measurement systems.

Jae-yoon Kim, a researcher at KTB Investment & Securities, stated, "The sensor and sensor device market is closely related to safety and environmental regulations, and as government safety and environmental regulations strengthen, the demand for the company's sensors inevitably increases. Since safety and environmental regulations are difficult to reduce once expanded, continuous expansion of the front-end market is expected."

He expected that Senko's sensor devices and environmental measurement systems would reflect sales in the fourth quarter, enabling performance improvement in the second half of the year. He explained, "Sensor devices mainly generated sales from public industrial gas safety devices, but due to strengthened regulations, the market is expanding from B2G → B2B → B2C. This year, new sales are expected from semiconductor factory gas detectors for SK Hynix and CO alarms for lodging facilities and residential gas boilers. CO alarms have been legally mandated for installation since August 5, 2020, driving the company's performance growth."

He particularly anticipated that Senko's role would grow as hydrogen systems expand in the future. He said, "Gas sensors are essential for building a hydrogen ecosystem. Due to the explosive risk of hydrogen leaks, installing gas sensors is mandatory. Senko, the only domestic electrochemical gas sensor company, is expected to benefit."

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