"GI Tech, Expected Benefits from Major Client Investments"

[Asia Economy Reporter Hyungsoo Park] Hana Financial Investment analyzed on the 4th that it expects growth for GI Tech, which is newly entering the KOSDAQ market, due to the expansion of its front-end industries.

Founded in 1990, GI Tech is a manufacturer of secondary battery and display coating equipment. Its main product lines include secondary battery coating equipment (SLOT DIE) and display coating equipment (SLIT NOZZLE). The company also operates a repair business that services worn equipment. The slot die is a core component used in roll-to-roll equipment, determining the electrode area, thickness, and pattern during the coating process, and must be replaced periodically. The sales composition by customer is SK Innovation 41%, LG Energy Solution 35%, Samsung Display 13%, and others 11%.

Hana Financial Investment forecasted that GI Tech's sales growth rate will increase due to large-scale investments by its major customers. In April this year, SK Innovation concluded its lawsuit and began large-scale facility investments. It is estimated that an investment of approximately 2 trillion KRW will be made in the second plant in Georgia, USA. There is a high possibility that sales of the exclusively supplied slot die will increase.

With the advancement of secondary battery performance, the frequency of using coating equipment has increased, shortening the repair cycle from 2 years to 6 months. Due to the nature of the equipment, which must be replaced with new products after 2 to 3 reuses, the replacement cycle has shortened, contributing to sales growth. GI Tech has established plans to strengthen future growth engines by entering new businesses such as hydrogen batteries and semiconductors through its existing coating equipment technology.

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