[Click eStock] "Onul E&M, a Key Beneficiary of Hyper-Connected Optical Communications Chosen by AT&T and Tesla"

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On April 21, independent research firm Briars Insight analyzed that Onul E&M is being highlighted as a key beneficiary in the era of hyper-connectivity, alongside the expansion of global telecommunications infrastructure investment. In particular, the firm explained that expectations for performance growth are rising, driven by increased market share in North America and the acquisition of global references.

Choi Jaeho, a researcher at Briars Insight, stated, "Onul E&M is a company established in 1997 specializing in the manufacturing and sales of a wide range of antennas essential for the construction of 5G and next-generation 6G wireless networks," adding, "The company is particularly specialized in small cell antennas, which address the challenges of next-generation communication networks."

Onul E&M offers a product lineup of antennas suitable for various environments, including base stations, tunnels, stadiums, and in-building settings, and holds a competitive advantage in small cell technology, which resolves network bottlenecks caused by high user density and physical obstacles. Small cells are regarded as core equipment for next-generation networks, maximizing traffic relief and network efficiency. According to a market research firm, the global small cell market is expected to grow from USD 13.2 billion in 2026 to USD 113.8 billion by 2035, representing a high compound annual growth rate of 27.2%.

Researcher Choi assessed, "As valuation multiples for optical communications-related sectors both domestically and internationally are rising, the company is positioned as Korea's leading optical communications beneficiary with global references," adding, "Its current valuation is significantly undervalued compared to peer companies such as KMW and Ace Technologies."

The company’s position in the North American market is being further strengthened. Researcher Choi stated, "As of the fourth quarter of last year, the company was identified as a primary vendor for AT&T, accounting for approximately 45% share of small cell antennas." AT&T has previously announced an investment plan of around USD 250 billion (approximately KRW 370 trillion) over the next five years, so as telecommunications infrastructure investment in the U.S. accelerates, the company is highly likely to benefit significantly.

This growth is also being confirmed in actual results. North American sales increased from KRW 1.86 billion in 2023 to KRW 9.6 billion last year, representing growth of approximately 415.7%. The export ratio also expanded from 21.1% to 63.2% over the same period. Last year, operating profit in the antenna segment reached around KRW 2.9 billion, marking a turnaround into the black. Researcher Choi emphasized, "The company is demonstrating a surge in demand by securing global clients and expanding market share based on its small cell technology," adding, "The intensity of the company’s performance growth benefits will inevitably increase going forward."

The company’s competitiveness is also evident from the perspective of global references. Onul E&M is targeting niche markets with antenna technology optimized for special environments prone to radio interference and reflection. In particular, through its log-periodic dipole array (LPDA) antennas, the company participated in building major metropolitan telecommunications infrastructure in Europe, such as in France and Italy.

Additionally, it has reportedly been the exclusive supplier of approximately 57 log-periodic antennas to the "Vegas Loop," a futuristic transportation system operated by Tesla. The Vegas Loop currently has eight stations in operation and is planned to expand to a 68-mile tunnel network with over 100 stations in the future. Researcher Choi assessed, "This explains why the adoption of the company’s products and its global market status will inevitably continue to rise."

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