[Click eStock] "NewPower Plasma Expected to Achieve Record First-Half Results on Rising RPS Sales to China"

On August 11, IM Securities analyzed that NewPower Plasma is expected to achieve record-breaking results in the first half of the year, benefiting from supply chain restructuring due to the US-China trade dispute.

For its flagship product, RPS, the global market is oligopolized by three companies, with all competitors except NewPower Plasma being American firms. However, due to the recent US-China trade dispute, these major American competitors have faced difficulties supplying RPS to Chinese local companies.

Lee Sangheon, a researcher at IM Securities, stated, "Due to this supply chain restructuring, NewPower Plasma has been supplying RPS, which typically has a replacement cycle of two to three years, to Chinese local companies since the second half of 2023, resulting in increased overseas sales to China."

In fact, in 2023, out of the company’s standalone sales of KRW 117.3 billion, overseas RPS sales increased to KRW 60.3 billion, raising the overall overseas sales ratio to 58.4%. Notably, the operating margin rose from 14.8% in 2022 to 15.7% in 2023 due to increased sales.

Lee further explained, "As sales to Chinese local companies have fully materialized, last year’s standalone sales reached KRW 144.6 billion (up 23.3% year-on-year), and operating profit was KRW 27.8 billion (up 51.1% year-on-year), accelerating profitability improvement. In particular, overseas RPS sales increased to KRW 85.9 billion (up 42.5% year-on-year), raising the overall overseas sales ratio to 64.6% and rapidly improving the operating margin to 19.2%."

He added, "Under these circumstances, standalone sales for the first half of this year are expected to reach KRW 83.3 billion (up 21.1% year-on-year), with operating profit at KRW 16 billion (up 22.1% year-on-year), which is projected to mark an all-time high."

Additionally, Lee forecasts that NewPower Plasma’s stake value in its core subsidiary, SpacePro, will come into the spotlight as new orders increase both domestically and internationally, driven by the strong performance of the space and defense industries. SpacePro is a specialized composite materials company, operating in various sectors such as the defense and aerospace industries, glass fiber pipes, and interior and exterior materials for railway vehicles, based on its expertise in glass fiber and carbon fiber.

In particular, for the space and defense sector, SpacePro is expanding its business areas into maritime, aviation, and ground fields, leveraging its composite material expertise. The company is broadening its scope into various segments of the space and defense industry, including lightweight structures for high-performance mobile weapon systems, bulletproof materials, ultra-high-temperature heat-resistant materials, electromagnetic functional materials, aircraft parts, guided weapons, and launch tubes.

SpacePro has produced fairings (composite structures) not only for Naroho, South Korea’s first space launch vehicle, but also for its successor, Nuriho. Furthermore, Lee analyzed that as SpacePro is developing key items such as military drones as well as other drones, its growth potential could be highlighted if exports become visible in the future.

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