AMOGREENTECH has announced its intention to achieve sales of 30 billion won in its battery business this year.
On the 12th, AMOGREENTECH announced this goal at the IPO IR held for general investors at the Korea Exchange in Yeouido, Seoul. In addition to its flagship business, flexible printed circuit boards (FPCB), the company will develop a battery business to ensure a soft landing as another flagship business. Until the third quarter of last year, their sales amounted to 66 billion won, with FPBC and high-efficiency magnetic parts accounting for 80% of this total.
The sales of batteries, such as flexible batteries and energy storage devices (ESS), are only 700 million won.
The growth engine for the battery business is ESS for the 5th generation (5G) mobile communication base station of KT. "We have received orders for all ESS for the newly added KT 5G base stations and existing base stations," said AMOGREENTECH CEO Yong-Sul Song. The concept is that the new battery will replace heavy and low-efficiency lead-acid batteries. "Flexible batteries are being supplied to BRITZ, Kumho Electric, One Tech, and others," he added.
The raw materials required for the battery business are imported from China. It is based on lithium iron phosphate (LFP) rather than the ternary system. The company attaches a battery monitoring system (BMS) and modularizes it in Korea to make a finished product. LFP is mainly used for electric buses and as black box batteries. Compared to the ternary system, the price is low and the stability is high while having low energy density. The domestic position of the product is not significant.
For the business of high-efficiency magnetic parts and heat dissipation solutions, the company is counting on electric vehicles (EV) and 5G. The key is to reduce waste by efficiently transferring energy. It has become necessary to efficiently manage the heat generated by motors, inverters, relays, and junction boxes as the battery capacity increases. Because data centers for processing big data consume more electricity, the heat generated by power supplies has also increased.
CEO Song said, "The EV and the 5G market is expected to grow rapidly this year, and related sales are expected to increase in earnest. In particular, in terms of 5G, we’re in the process of collaborating with related smartphone makers. And because we can effectively eliminate the generated heat, the supply contract is being considered.”
He also emphasized, "We will make this year to be the first year of turning black so that research and development (R & D) results would lead to sales. We will achieve sales of 132 billion won and operating profit of 7.5 billion won."
AMOGREENTECH will be listed on KOSDAQ as a special technology company. The number of shares for the public offering is 4,128,000. The public offering price per share is from 8,800 won to 9,900 won, and the planned amount to be offered is 40.8 billion won. On 12th and 13th, the public offering price will be determined by forecasting demand from institutional investors. The company will be listed on the KOSDAQ on the 29th after receiving applications for shares on 19th and 20th.