[Click eStock] "Amogreentech: Tesla Optimus and ESS... The Hidden Beneficiary"

On April 23, SK Securities analyzed that Amogreentech is attracting attention amid expectations of benefiting from the expansion of the energy storage system (ESS) and robotics industries. Accordingly, SK Securities initiated coverage with a "Buy" investment rating and set a target price of 24,000 won.

Amogreentech specializes in ESS and power materials, focusing on high-efficiency magnetic materials, nanomembrane business, and LFP-based ESS finished products. Its major clients include Tesla, Rivian, Samsung Electronics, SoftBank, and American Tower. As of last year, revenue breakdown was 35.5% from ESS finished products, 35.0% from magnetic materials, 22.3% from nanomembrane, and 7.2% from others, with ESS-related revenue accounting for around 50% of the company's total.

Seonjae Heo, a research analyst at SK Securities, stated, "The main reasons to pay attention to Amogreentech now are the expected record-high results this year driven by sales growth in ESS (for telecommunications and renewable energy) and magnetic materials (for Tesla ESS and EVs), and the anticipated expansion into the robotics industry by newly entering the value chain for Tesla's humanoid robot 'Optimus.'"

The ESS business is expected to grow based on rising demand in telecommunications and renewable energy. Analyst Heo explained, "Amogreentech is supplying LFP-based small ESS for emergency power to telecommunications, renewable energy, and electric locomotives." He added, "With the Japanese Ministry of Internal Affairs and Communications implementing BCP regulations, backup power for base stations has been extended from 2 hours to 72 hours, and supply of telecommunications ESS for SoftBank and KDDI is expected to begin in the second half of 2026." He also noted, "The company is the exclusive supplier to global wind control system company KK Wind Solutions, and the replacement of lead-acid batteries with LFP ESS has only just begun."

The magnetic materials business is also a key growth driver. Heo commented, "Amogreentech is competing with Proterial of Japan and VAC of Germany in the field of core materials that minimize energy loss in power conversion devices such as EVs, ESS, and chargers." He emphasized, "Tesla, which accounts for about 70% of magnetic material revenue, is expected to drive future growth."

He further explained, "Several factors will simultaneously drive revenue growth starting in the second half of this year: a rebound in EV shipments following the launch of affordable new models, a surge in ESS shipments due to growing demand from AI data centers, and increased market share within Tesla driven by the trend of diversification away from China and strong customization capabilities."

Robotics and LNG power generation are emerging as new front markets. Heo stated, "Based on its long-term partnership with Tesla, Amogreentech has reportedly been selected as the main vendor for magnetic materials for Optimus chargers, with related revenue expected to begin in the second half of this year." He added, "With rapidly increasing power demand from AI data centers highlighting LNG combined-cycle power plants as a fast-building alternative, the company is supplying metallic converters, which are exhaust gas purification components, to global gas turbine manufacturers."

Performance is also expected to improve sharply. Heo analyzed, "This year, the company is projected to achieve record-high results, with sales of 152.9 billion won and operating profit of 14.4 billion won." He identified the commencement of supply of telecommunications ESS for SoftBank and KDDI in Japan, increased supply volume for KK Wind Solutions, and overall cost structure improvements as key drivers.

He added, "From 2027, a sharp increase in magnetic material sales driven by expanded production of Tesla EVs and ESS, a full-scale increase in Japanese telecommunications ESS volume, and visible supply for Optimus chargers will enable entry into the robotics value chain. This is expected to lead to both performance growth and a meaningful re-rating in valuation multiples."

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