[Click e-Stock] "Nano, Dual Boost from Expansion of AI Power Infrastructure and Strengthened Environmental Regulations"

On April 16, GL Research analyzed that Nano has entered a phase of structural growth in demand for SCR denitrification catalysts, driven simultaneously by increased investment in power infrastructure due to the proliferation of AI data centers and the strengthening of global environmental regulations.

Nano is an environmental materials company specializing in SCR denitrification catalysts, which are used to reduce nitrogen oxides generated during fossil fuel combustion. The company has established a total solution business structure covering not only catalyst products but also raw materials and denitrification facilities. It is also diversifying its downstream industries by expanding the application of its solutions from traditional thermal power plants to ships, plants, and HRSGs (Heat Recovery Steam Generators).

Recent financial results confirm improved profitability due to changes in the business structure. In 2025, consolidated sales slightly decreased to 85.6 billion won, but operating profit surged to 5.5 billion won, signaling a shift in the profit structure. In particular, on a separate basis, the increase in SCR catalyst sales and the greater proportion of high-margin products have driven a rise in profit margins.

The core growth driver is the increasing power demand from AI data centers. As global big tech companies expand on-site power generation to secure stable electricity, demand for SCR catalysts for LNG combined cycle power plants and emergency generators is on the rise. Nano has secured production capacity for high-density cells through the expansion of its second plant and is working to increase supply, especially for high-value-added products used in data center power applications. High-density cells command approximately 2.5 times higher prices than conventional products, which is expected to improve the product mix and enhance profitability.

Growth is also continuing in the shipbuilding and plant sectors. As IMO environmental regulations become stricter, demand for SCR catalysts for ships is increasing, and Nano, as a supplier to global engine companies, is expanding its share of high-margin products. In particular, products for ships are more profitable than those for thermal power plants, contributing to overall improvement in the profit structure.

Changes in the energy market are also acting as a positive factor. If the operation rate of coal-fired power plants rises due to instability in global energy supply, this could lead to increased demand for catalyst replacement. As the leading player in the domestic SCR catalyst market, Nano is expected to benefit from changes in power plant operation rates.

Changyoon Park, a researcher at GL Research, commented, "Nano is a key beneficiary of the increasing demand for SCR catalysts driven by structural changes such as expanding AI data center power demand and stronger environmental regulations," adding, "As the company improves its product mix with high-value-added products and expands into new downstream industries, both growth and profitability are expected to improve over the medium to long term."

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