[Click eStock] "Apro, Expected Benefits from Client's US Investment"

[Asia Economy Reporter Song Hwajeong] On the 27th, NH Investment & Securities evaluated that Apro is expected to experience rapid earnings growth due to the expansion of its client's overseas facility scale. No investment opinion or target price was provided.

Apro is a battery equipment company that produces battery post-processing equipment such as charge-discharge devices and high-temperature high-pressure charge-discharge devices. Its main client is LG Energy Solution, accounting for 90% of its sales revenue. Ju Minwoo, a researcher at NH Investment & Securities, stated, "Sales recognition for equipment supply to the first plant of Ultium Cells, a battery joint venture between LG Energy Solution and General Motors (GM), is expected to begin in the fourth quarter of this year. Sales recognition for supply contracts to domestic and Polish plants is also expected to start from the fourth quarter, leading to an estimated 56.7% increase in sales this year to 76.8 billion KRW compared to the previous year."

Benefits are expected from LG Energy Solution's expanded investment in the United States. According to LG Energy Solution's securities report, the planned battery production capacity in the U.S. by 2025 is approximately 160 GWh, consisting of 80 GWh from Ultium Cells, 55 GWh from joint ventures with Stellantis and new OEMs (Original Equipment Manufacturers), and 25 GWh from its own plants. The researcher explained, "It is difficult for Chinese competitors of Apro to enter the U.S. mainland, giving Apro an advantage in order acquisition. Along with LG Energy Solution's expanded investment in the U.S., a favorable business environment is expected to continue, leading to increased equipment supply from Apro."

New business prospects are also promising. Apro has developed next-generation GaN power semiconductor devices to advance activation equipment. Currently, quality testing is underway, and once mass production begins, these devices will be used to enhance activation equipment. Power semiconductors are characterized by high efficiency, miniaturization, and high-speed switching. Simplified design reduces costs and decreases the overall size of the equipment. Additionally, high-speed switching reduces losses during power conversion, lowering energy consumption costs. The researcher added, "Apro is expanding its business spectrum related to power conversion technology by applying power conversion and circuit technology not only to secondary battery activation processes but also to battery recycling, two-wheeler charging stations, and electric vehicle charging services."

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