[Special Stock] Abaco Expected to Increase Secondary Battery Sales Equal to Market Cap...Revaluation of 'Value' Up with Secondary Battery

Abaco's stock price is on the rise. Abaco is reportedly establishing a dedicated factory for secondary battery production machinery and equipment on a site of about 50,000㎡ within the Sangju General Industrial Complex by September, which appears to be influencing the stock price. The company expects an annual sales increase of 250 billion KRW. Last year, Abaco recorded sales of 217.3 billion KRW and an operating profit of 13.6 billion KRW. With the operation of the new factory, annual sales could potentially double.

As of 12:04 PM on the 6th, Abaco is trading at 17,550 KRW, up 6.04% from the previous day. Abaco's market capitalization has surpassed 270 billion KRW.

According to the MOU signed, Abaco plans to diversify its product lineup and increase production volume by constructing the new factory and introducing the latest production facilities.

Mayor Kang Young-seok of Sangju said, "We welcome Abaco's investment decision," adding, "Gyeongsangbuk-do and Sangju City will actively cooperate through business-friendly administration to ensure the smooth progress of the project."

The factory to be built in Sangju will be a dedicated facility for secondary battery production equipment primarily targeting the North American market, with completion aimed for the end of September. The company expects that after the construction of the Sangju factory, an additional annual sales revenue of about 250 billion KRW related to secondary battery equipment will be generated through synergy effects with existing businesses. They explained that the construction of the Sangju factory will serve as an additional growth momentum.

A company representative stated, "Sales of secondary battery equipment are steadily increasing," and added, "This year, the proportion of secondary battery equipment in total sales is expected to be about 40%." They further said, "We will continue to supply secondary battery production equipment in line with the production facility investments of domestic and overseas secondary battery companies."

Daishin Securities introduced that Abaco supplies secondary battery logistics equipment to LG Energy Solution. It also delivers slitting equipment for copper foil to Iljin Materials. Since 2019, it has been supplying logistics equipment to LG Energy Solution. The company has completed the development of technically challenging roll press equipment and is conducting tests. New orders for secondary battery roll press equipment are expected to occur in the first half of this year. As equipment related to the electrode process with a high unit price, it is analyzed that it will contribute to performance improvement going forward.

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