[Click e-Stock] "Senko Expected to Achieve Turnaround in Q2 on Expanding US and China Sales"

On May 26, IV Research stated that Senko is expected to achieve a turnaround starting in the second quarter of this year, driven by expanding sales in the United States and China.

IV Research explained, "From the second half of the year, sales to the American industrial safety equipment company 'Total Safety' will be fully reflected, and the supply of fixed gas detectors to China will begin, resulting in a performance trend of 'lower in the first half, higher in the second half'." Regarding the first quarter results, the firm pointed out, "Performance was sluggish due to the slowdown in the domestic economy." Senko's annual performance for this year is estimated at 45 billion won in sales and 5 billion won in operating profit.

Senko is a specialized gas detector company with its own electrochemical gas sensor technology, supplying portable and fixed gas detectors to semiconductor, advanced IT, and other industrial sites both domestically and internationally.

On May 16, Senko signed a contract with Total Safety for the sale of portable gas detectors. Total Safety is a leading global company with annual sales of about $750 million (based on last year). IV Research commented, "Although the specific contract size has not been disclosed, considering the scale of Total Safety's sales and customer networks, the supply volume is likely to exceed the existing supply level to overseas customers." The firm also noted, "Senko's possession of its own sensor technology provides a significant advantage in terms of technological capability and reliability."

Senko is also accelerating its efforts to enter the Chinese market. Last year, through a contract with local partner GXC, Senko began quality testing of fixed gas detectors for major semiconductor and display companies such as Huawei, SMIC, and BOE. In December of last year, Senko was registered as a supplier to BOE, and testing for major semiconductor companies such as Huawei is expected to be completed within this year.

IV Research forecast, "Amid the US-China trade conflict, as Chinese companies seek to replace American-made fixed gas detectors, Senko's chances of supplying to these companies are very high."

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