[Weekend Money] Secondary Battery 'Chasm'? ... The Company That Alone Delivered Strong Results

원본보기 아이콘

Despite the global slowdown in the battery industry, Mplus, a secondary battery equipment manufacturer, is being recognized as a “standout in the industry,” thanks to its remarkable growth in performance and improved profitability.

Mplus announced that last year it recorded sales of 184.2 billion won and operating profit of 24.6 billion won. Compared to the previous year, sales increased by 43.0%, and operating profit surged by 143.4%.

Even though new equipment orders have been declining as the global secondary battery market enters a consolidation phase, Mplus continued its external growth by providing maintenance services for previously supplied equipment and supporting production line adjustments for its clients. In particular, demand for related equipment grew as production lines were converted from electric vehicles (EVs) to energy storage systems (ESS), contributing to improved results. In addition, diversifying its product line and focusing on orders for high-profit equipment further boosted profitability.

Seungdoo Na, a researcher at SK Securities, said, “Among global secondary battery equipment manufacturers, Mplus showed the most distinct improvement in performance and high profitability last year. The company succeeded in expanding its business domain by diversifying its product lines and focusing on orders for high-profit equipment, which also led to improved profitability.”

Mplus’s competitiveness is said to stem from its high production efficiency. The company supplies turnkey pre-assembly equipment for pouch-type and prismatic secondary batteries based on comprehensive equipment efficiency (OEE) exceeding 90%, securing the world’s highest levels of production speed and accuracy.

Researcher Na added, “Mplus not only supplies turnkey pre-assembly equipment for pouch-type and prismatic secondary batteries, but also boasts world-class production speed and accuracy. On this basis, the company is working to extend its business scope to electrode processes.”

The company’s expansion into next-generation battery fields is also noteworthy. Mplus is now actively entering the all-solid-state battery equipment market. In 2024, it received an order for an all-solid-state battery assembly line from a US-based specialist, and in 2025, from a Korean company.

He explained, “Although these orders are still at the research (pilot) stage, the pace of future order growth is expected to be the fastest, as all-solid-state batteries, with their high energy density and safety advantages, are projected to see rapid application expansion to areas such as humanoid robots.”

The company’s active shareholder return policy, based on improved performance, is also attracting investor attention. Mplus announced its shareholder return policy in March last year as part of its enterprise value enhancement plan, and in June, it published its Sustainability Report (ESG Report).

He explained, “Based on the shareholder return policy to maintain a dividend payout ratio of over 10%, the existing dividend of 100 won per share is likely to rise to at least 160 won per share.” Additionally, the company has been proactively acquiring and canceling convertible bonds before maturity and retiring treasury shares, continuing its efforts to enhance shareholder value.

Researcher Na stated, “While most secondary battery equipment manufacturers are posting losses, those companies that are profitable in electrode and assembly processes are trading at an average price-to-earnings ratio (PER) of 12 to 22 times. Mplus, however, is trading at only about 7 times the expected PER for this year, highlighting its undervaluation and investment appeal.”

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.