[Click eStock] "Nuriplan Poised to Benefit from AI Data Center Seismic Isolation Equipment... Subsidiary Growth Accelerates"

On May 29, independent research firm ValueFinder analyzed that Nuriplan is currently undervalued, citing several factors: performance growth at its subsidiary UnisonHKR, increasing demand for seismic isolation equipment driven by the expansion of AI data centers, and entry into the eco-friendly coating business.

Nuriplan is a KOSDAQ-listed company engaged in urban landscaping, landscape lighting, and construction·plant businesses. As of the first quarter of this year, the construction·plant division accounted for the largest share of revenue at 64.1%, followed by landscape facilities at 20.4%, and landscape lighting at 15.5%. In particular, the construction·plant division, led by UnisonHKR, is regarded as the main driver of overall growth in scale.

In the first quarter of this year, revenue from the construction·plant division reached 17.4 billion won, a 24.2% year-on-year increase, while net profit surged by 321% to 2.4 billion won, reflecting robust performance.

UnisonHKR supplies pipe supports such as bridge bearings and expansion joints to nuclear and thermal power plants, petrochemical plants, and LNG storage tanks. Based on its self-developed design program, the company has established a de facto monopoly in the domestic market, and its technological competitiveness has been recognized by being registered as a partner company of Saudi Aramco.

It is particularly notable that 30% to 40% of the company’s production is supplied to overseas plant projects, and its seismic isolation equipment business, which holds the largest number of references in Korea, is emerging as a new beneficiary thanks to the expansion of the AI data center market. As the number of AI data centers increases, demand for vibration control and safety is rising, leading to expectations that both demand and prices for seismic isolation equipment will enter a phase of simultaneous growth.

In its core business, the company has secured exclusive domestic supply and construction rights for eco-friendly water-based high-polymer coating technology through technical cooperation with Belgian company Dothy.

This technology is characterized by reducing the painting process from four to six steps to just two, and by eliminating the blasting process. With durability exceeding 30 years, it can reduce life cycle costs (LCC) by more than 30%, making it highly competitive in the aging bridge and plant maintenance markets.

The company is targeting major markets such as aging bridges managed by Korea Expressway Corporation, the National Railway Authority, and local governments, and is expected to benefit from the government's continued expansion of social overhead capital (SOC) investments, leading to potential growth in orders.

On a consolidated basis, Nuriplan's first-quarter sales reached 27.2 billion won, up 16.1% year-on-year, and operating profit surged by 282% to 1.7 billion won. The cost of sales ratio improved by 4.2 percentage points year-on-year to 74.4%, indicating a continued recovery in profitability.

Jun Woobin, a researcher at ValueFinder, commented, "UnisonHKR maintains a stable overseas sales ratio based on its domestic monopoly position in core components for nuclear power, plant, and LNG equipment, as well as its status as a partner of Saudi Aramco. The seismic isolation equipment business, which holds Korea’s largest number of references, is expected to emerge as a new beneficiary as demand from AI data centers expands."

He added, "Securing exclusive domestic rights for the eco-friendly water-based coating method from Belgian company Dothy has given the company differentiated competitiveness in the aging bridge and plant maintenance markets. The effect of reducing life cycle costs, combined with the government's expanding SOC investment, is expected to accelerate order momentum going forward."

Nuriplan is thus drawing growing expectations for mid- to long-term growth, as demand for seismic isolation equipment driven by AI data center expansion and growth potential in its new eco-friendly coating business are simultaneously highlighted.

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