[IPO Spotlight] Will YM Tech Ride the Carbon Neutrality Wave to Settle in KOSDAQ?

EV Relay Manufacturer for Electric Vehicle and ESS Industries
Operating Rate Rises Due to Increased Orders...Expecting Fundraising for Expansion through IPO

[Asia Economy Reporter Hyungsoo Park] YM Tech, a developer of relays, a core component for power control, is set to begin full-scale expansion following its listing on the KOSDAQ market. Globally, strong regulations on carbon emissions have been implemented to combat global warming. As policies to promote renewable energy as an alternative to fossil fuels gain momentum, YM Tech expects many growth opportunities.

According to the Financial Supervisory Service on the 19th, YM Tech will conduct a demand forecast for institutional investors over two days starting from the 25th to determine the public offering price for its KOSDAQ listing. The price range proposed by YM Tech and the lead underwriter KB Securities is 21,000 to 25,000 KRW.

YM Tech’s main revenue product, the relay, is a switch device used in the electrical and electronics industries to control devices or current-carrying circuits. It operates by opening or closing switch contacts using an electromagnet. The company primarily produces DC high-voltage EV relays applied in energy storage systems (ESS), electric vehicles, EV chargers, and solar inverters. It also supplies DC relays and latch relays used in electric vehicles operating on low-voltage DC power, rectifiers, and lighting control.

Major clients include Samsung SDI, LG Energy Solution, SK Innovation, and Signet EV. YM Tech has developed products that meet customer requirements through years of technical consultations.

YM Tech expects to raise at least approximately 12.3 billion KRW through its initial public offering (IPO). The funds raised will be used for factory expansion to increase EV relay production capacity and for facility investments to improve production line efficiency. Additionally, the funds will be allocated to research and development for next-generation models aimed at expanding market share in EV relays.

Currently, the EV relay production capacity is 448,000 units annually, with an operating rate of about 70% from 2018 to last year. Globally, investments in the eco-friendly energy industry, particularly ESS, have increased demand for high-current, high-voltage EV relays. This is why the operating rate rose to 93.73% in the first half of this year. Since there is insufficient capacity to smoothly handle increasing orders from clients, the company decided to expand its production facilities.

YM Tech also plans to actively respond to the rapidly growing electric vehicle market. It will conduct research and development on the EVS series, a hydrogen-sealed EV relay product mainly used in electric vehicles. The operating voltage of electric vehicle batteries is trending upward from DC 400V to DC 800V to enable fast charging, extend driving range, and reduce vehicle weight. Reflecting this trend in the high-voltage electric vehicle market, YM Tech is developing DC 800V-class EVS series products. A prototype is expected to be developed within this year, with mass production starting next year. After official testing and certification by authorized institutions and obtaining overseas standards, product supply is anticipated to begin in 2023.

In South Korea, disconnectors have been mandated to prevent ESS fire accidents. Since there are no domestic disconnectors yet, foreign products are currently used. Considering the growth potential of ESS-dedicated disconnectors and isolators, YM Tech has begun developing DC 1500V-class disconnectors and isolators that meet the requirements of ESS manufacturers.

EV relays are electrical and electronic components that provide power control functions and require a high level of reliability and safety. The market is dominated by Panasonic and Denso. YM Tech has secured core technologies and possesses diverse manufacturing experience based on continuous research and development and long-standing expertise. However, if competition intensifies due to aggressive investments and business expansions by existing companies and new entrants backed by capital, there is a risk of profitability deterioration.

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