[Featured Stock] Amogreentech Leads in Electric Mining Locomotives Following Electric Vehicles... One of the World's Top 3 High-Efficiency Magnetic Components

[Asia Economy Reporter Hyungsoo Park] Amogreentech is showing strong performance. Securities firms' analysis that the stock price is undervalued compared to its high growth potential seems to have influenced the stock price.

As of 2:28 PM on the 23rd, Amogreentech is trading at 14,000 KRW, up 9.38% from the previous day.

Kiwoom Securities analyzed on the 23rd that despite high growth potential, Amogreentech's stock price is attractive with a price-to-earnings ratio (PER) of about 10 times based on next year's expected earnings.

Hyunjin Oh, a researcher at Kiwoom Securities, explained, "Amogreentech posted an operating profit of 2 billion KRW in the second quarter, breaking away from the quarterly deficit trend that had continued for several years."

He added, "The main reason is the growth in high value-added product sectors such as high-efficiency magnetic components and energy storage systems (ESS), replacing mobile-oriented products like flexible printed circuit boards (FPCB) and heat dissipation materials, which previously accounted for the largest sales proportion."

Researcher Oh introduced, "One of the main products, high-efficiency magnetic components, is a core material component that minimizes energy loss and improves power efficiency. Product types include inductor cores that enhance energy conversion efficiency in power conversion devices and CMCs that block noise in electronic circuits."

He emphasized, "They are used in power modules for electric vehicles as well as in inverters for renewable energy. Recently, with the growth of the electric vehicle market and the emergence of various high-output models, demand for high-efficiency, high-capacity magnetic components is increasing."

Researcher Oh forecasted, "High-efficiency magnetic components are installed starting from models above 150kW, and the number of components increases with higher output models. As electric vehicle manufacturers' production plans rapidly increase, demand for high-efficiency magnetic components will also rise."

He analyzed, "The global high-efficiency magnetic component market is led by three manufacturers: Germany's VAC, Japan's Hitachi Metals, and Amogreentech. Amogreentech is understood to be supplying mainly to North American electric vehicle company T."

Furthermore, he estimated, "Expansion into various electric vehicle companies is expected, and sales in the high-efficiency magnetic components sector will increase to 52.7 billion KRW this year and 72.3 billion KRW next year."

Electric vehicle manufacturer Tesla produced 930,000 units last year and plans to produce 2 million units this year. It has set a goal to increase production by 50% annually over the next several years. Electric pickup truck manufacturer Rivian began deliveries in the third quarter of last year, producing about 1,000 units. It is understood to aim for 25,000 units this year and over 100,000 units next year.

He explained, "Freight locomotives used in mines were mainly diesel-powered. Recently, with various policies announced related to environmental issues, the replacement speed of freight trains with electric locomotives is accelerating."

He analyzed, "Freight railroad operator Union Pacific Railroad has set a goal to reduce greenhouse gas emissions by 26% by 2030 and is understood to have recently placed an order for about 20 battery-powered locomotives." He added, "Mining company BHP recently ordered four electric locomotives and plans to convert more than 180 locomotives to electric locomotives in the future."

Researcher Oh also stated, "Australian mining company Fortescue is also progressing decarbonization by purchasing electric locomotives. The electric locomotive market is led by Progress Rail and Wabtec under Caterpillar." Amogreentech is understood to supply BMS solutions to major global locomotive manufacturers.

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