Philoptics Makes Samsung SDI's First Investment in Subsidiary... Successfully Transitions to Main Equipment Supplier for Secondary Batteries

[Asia Economy Reporter Hyungsoo Park] Philoptics' stock price is on the rise.

At 10:18 AM on the 18th, Philoptics was trading at 16,600 KRW, up 4.4% from the previous day.

Philoptics announced that its subsidiary, Phil Energy, will raise 5 billion KRW through a third-party allotment paid-in capital increase. It will issue 60,000 new shares, and Samsung SDI will participate in the capital increase.

The secondary battery business division of Philoptics is handled by its subsidiary Phil Energy. In the second half of last year, Philoptics secured orders for new secondary battery process equipment from major customers. The orders are related to stack equipment as the customers switch the secondary battery manufacturing process from the existing jelly roll method to the stack method.

Researcher Han Kyung-rae of Daishin Securities explained, "It is planned to be first applied to two additional lines invested in the Hungary Plant 1," adding, "Following the existing laser notching equipment, the expansion of new process equipment orders amounts to approximately 80 billion KRW."

He continued, "Considering additional investments in the second half of next year, we expect about 100 billion KRW in new orders annually in 2020," and added, "The production capacity of major customers' secondary batteries is expected to expand from 20 GWh in 2019 to 105 GWh in 2025."

Furthermore, he emphasized, "Related equipment can be applied from the beginning at Hungary Plant 2," and "Since Plant 2 is expected to have a larger scale of investment compared to Plant 1, securing mid- to long-term orders in the future is certain."

Researcher Han also stressed, "In preparation for this, we plan to move to the new Osan headquarters by the end of next year and expand the production capacity of Philoptics (display) and Phil Energy (secondary battery) from the current level of 400 billion KRW to over 700 billion KRW."

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