[Click eStock] "Chaevi to Benefit from Era of 1 Million EVs... Korea’s No.1 Rapid Charging Infrastructure Company"

On April 29, independent research firm ValueFinder released a report analyzing that Chaevi, an electric vehicle charging infrastructure company, deserves attention for being the first private-sector No.1 CPO (Charge Point Operator) to be listed on the stock market, as the market environment is rapidly improving in line with South Korea’s cumulative EV registrations surpassing 1 million units.

Founded in 2016, Chaevi offers integrated services encompassing the development, manufacturing, installation, operation, and after-sales management of EV chargers. As of December last year, the company operated 5,910 proprietary rapid chargers, and including units managed under consignment for the Ministry of Environment, it operates over 10,500 chargers, solidifying its position as the largest private operator in the country. Notably, CPO operating revenue increased from KRW 13 billion in 2022 to KRW 52.4 billion last year, representing an average annual growth rate of approximately 59% and expanding its share of total revenue to 51.5%.

In the recent public subscription, deposits worth about KRW 4.2 trillion were collected, and a total of KRW 110.7 billion in IPO funds was secured. The final offering price was set at KRW 12,300, and the mandatory holding commitment ratio reached 76.82%, meaning that the volume available for trading immediately after listing is limited, which is also a notable feature.

The EV market environment is also showing positive changes. As of April 15, the cumulative number of EVs registered in South Korea exceeded 1 million, and in the first quarter of this year, EVs accounted for 20.1% of new car sales, up more than 7 percentage points year-on-year. In addition, demand has surged, with contracts for more than 60,000 units of Tesla’s Model Y L—released on April 3—estimated so far, and on April 10, the prices of three models were raised by KRW 4–5 million. These developments are interpreted as signals that the EV market has passed the chasm and is entering a full-fledged mass adoption phase.

Policy support is also being strengthened. Lee Chungheon, a researcher at ValueFinder, explained, “This year, the government expanded the budget for passenger EV subsidies by about 30% year-on-year to KRW 936 billion, and introduced a new subsidy of up to KRW 1 million for switching from internal combustion engine vehicles to EVs.” He added, “With the revision of the Clean Air Conservation Act, the previous standard, which recognized one gasoline vehicle as equivalent to 0.6 EVs, has been changed to zero this year, which will further increase the pressure on automakers to expand EV sales.”

Positive changes are also evident in terms of business structure. As of last year, CPO operating revenue accounted for 51.5% of Chaevi’s total revenue of KRW 101.7 billion, accelerating the shift from a focus on charger manufacturing and sales to a focus on operating revenue. Given the direct link between increased EV adoption and charging demand, which translates immediately into CPO revenue growth, Chaevi is regarded as the company that will benefit most directly.

Researcher Lee predicted, “In an environment where various momentum drivers—such as expanded EV adoption policies, increased subsidies, and regulatory reforms—are all at play, Chaevi’s profitability is likely to improve at an even faster pace.” He added, “Given the rarity of the first listing by the country’s No.1 CPO and the high mandatory holding commitment ratio, market attention is expected to be focused after listing.”

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