[Click eStock] "Onul E&M Emerges as Key Partner in AT&T's $14 Billion Open RAN Project"

Independent research firm ValueFinder stated on May 11 that Onul E&M's potential to benefit from Ukraine's digital reconstruction project, as well as its competitiveness in the global telecommunications infrastructure market, are positive factors.

According to Lee Chungheon, a researcher at ValueFinder, in a report released that day, Onul E&M is expanding its tangible achievements, particularly in the European and North American markets. He emphasized that by supplying dedicated 5G tunnel antennas for the subways in Paris, France and Rome, Italy, the company has proven its high-durability antenna technology, which is specialized for railway environments.

The report forecast that such technological capabilities have a high likelihood of being utilized in Ukraine's reconstruction project going forward. It explained that, beyond simple infrastructure restoration, direct benefits are expected for Onul E&M as the "digital reconstruction" project will focus on building next-generation railway communications networks (FRMCS) and public safety networks.

In particular, Onul E&M has already completed the European ESG auditor certification process, meeting relevant supply requirements. ValueFinder predicted that whether the company participates in the Ukraine project will become a key point of interest for the market in the future.

The company's influence in the North American market was also highlighted. Onul E&M is participating as a core partner in the USD 14 billion Open RAN (Open Radio Access Network) project led by AT&T and Ericsson. Based on its U.S. subsidiary established in 2015, the company has secured primary vendor status with AT&T, and held a global small cell antenna market share of approximately 44%, ranking number one worldwide as of the fourth quarter of last year.

Recently, the company also won the contract for the LA Memorial Coliseum communications system upgrade project, continuing its momentum in securing large-scale projects. Accordingly, the report projected that overseas sales will increase to around 70% of total sales this year, and profitability will also improve.

It was also analyzed that the overhang issue, previously cited as a burden in the capital market, has largely been resolved. According to ValueFinder, of the KRW 40 billion fifth convertible bond (CB) issued by Onul E&M in August 2024, about KRW 36.9 billion has already been absorbed by the market. The remaining unconverted amount is approximately KRW 3.1 billion, accounting for only 2.9% of the total number of issued shares, significantly easing supply uncertainty.

An official from Onul E&M stated, "We view external assessments positively that our railway-specialized communications technology, proven in the European market, can contribute to Ukraine's digital infrastructure reconstruction project," and added, "Based on our globally competitive technology and ESG management, we will strive to expand in overseas markets and enhance shareholder value."

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