[Click eStock] "YM Tech, Manufacturer of Core Components for Eco-Friendly Vehicles"

[Asia Economy Reporter Hyunseok Yoo] KTB Investment & Securities analyzed YM Tech on the 15th as a manufacturer of core components for ESS, electric vehicles, and hydrogen vehicles. No investment opinion or target price was provided.

YM Tech is a specialized EV Relay manufacturing company established in 2004. EV Relays are essential devices used in ESS, electric vehicles, chargers, and solar inverters, physically disconnecting electrical contacts to control the transmission and interruption of electrical energy.

Researcher Jaeyoon Kim explained, "EV Relays are products dominated by a few companies and reliant on imports. Since they were developed to be installed on space shuttles, a few companies from the US and Japan have monopolized the market since the early stages of the industry’s formation," adding, "They are high-margin products produced by a small number of companies with high technical entry barriers."

Researcher Jaeyoon Kim also stated, "YM Tech is expected to experience rapid growth in the EV Relay market for electric vehicles. Currently, the operating rate of the Cheongju plant is around 94%, and production capacity for EV Relays for electric vehicles will be expanded through public offering funds," adding, "The target markets are the US, Europe, and China. Once the expansion is completed, the annual production volume is expected to reach approximately 760,000 units, an increase of more than 75% compared to the existing capacity."

For this year’s performance, sales are projected at 28.3 billion KRW with an operating profit of 7.5 billion KRW, representing increases of 66% and 67%, respectively, compared to the previous year.

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