[Click e-Stock] "SeAH Mechanics Expands from ESS to Robotics... Q1 Earnings Surge Triggers Revaluation"

SeAH Mechanics, a company specializing in aluminum die casting, is fueling growth expectations by rapidly expanding its business portfolio, focusing on energy storage systems (ESS) and robot components. The company is being recognized for moving away from its previous display-centric business structure and expanding into high-growth industries such as future mobility, robotics, and ESS.

Joonseok Lee, a researcher at Hanyang Securities, stated in a recent report that SeAH Mechanics is "all about robot components," and analyzed that "it is at a turning point, expanding its portfolio across future industries where lightweight and precision are required."

SeAH Mechanics is a precision parts manufacturer based on aluminum die casting that was listed on the KOSDAQ market in 2022. As of the first quarter of this year, the parts business accounted for 24.2 billion won, or 72.0% of sales, while the IT business accounted for 8.7 billion won, or 25.9%. The parts business is centered around secondary batteries, ESS, and robot components, while the IT business mainly focuses on display-related equipment.

Die casting is a process that secures both the lightweight and rigidity properties of aluminum, making it highly useful for industries where weight reduction is crucial, such as electric vehicles, ESS, and robotics. Leveraging this technology, SeAH Mechanics is expanding its application range across future industries. The company’s strength also lies in securing a customer base centered on the value chains of LG Group and Hyundai Motor Group. This is significant because increased investment by major clients is likely to lead to more orders and business growth.

In fact, SeAH Mechanics’ order backlog stood at approximately 611.9 billion won as of the first quarter of this year. This means the company has secured a stable annual sales base of about 120 billion won on average for the next five years. Furthermore, as new business revenues from ESS and automotive displays begin to materialize, the company is also seeing improved mid- to long-term earnings visibility.

Among its business segments, the ESS division has shown the most rapid growth recently. SeAH Mechanics’ ESS sales grew from 1.2 billion won in 2024 to 10.5 billion won in 2025, and further expanded to 16.2 billion won in the first quarter of this year. In just one quarter, the company surpassed its total annual ESS sales from last year.

ESS components are key parts responsible for external covers and protective functions in energy storage systems. As global investments in power infrastructure increase and the market for large-capacity ESS and distributed energy solutions expands, demand for safety, durability, and lightweight features is rising simultaneously. SeAH Mechanics has already secured supply references for LG Energy Solution’s ESS parts, and there is potential for expanding its customer base to global battery manufacturers in the future.

Researcher Lee commented, "The area where the expansion of die casting applications is first being reflected in the company’s performance is ESS. If the North American ESS market grows and client companies expand their production capacity, related sales could become a key growth driver in the mid- to long-term."

The business outlook is also positive. Hanyang Securities forecasts SeAH Mechanics’ consolidated revenue this year will reach 129.1 billion won, up 50.4% year-on-year, and expects an operating profit of 7.63 billion won, marking a turnaround into profitability. This suggests the company is entering a phase where both external growth and profitability improvement can be achieved simultaneously.

The market is also paying attention to the potential for the robotics business to expand. SeAH Mechanics is currently expanding its new product lineups, focusing on lightweight and high-rigidity die-cast robot parts and precision drive mechanisms. Main products include housings, joint parts, frames, and structural components around robot joints.

Notably, the company’s accumulated expertise in mechanical design from its existing display and automotive parts businesses is expected to create strong synergies for its robot components segment. Moreover, with experience supplying robot parts to LG Electronics, there is potential for SeAH Mechanics to broaden its customer base to include industrial and service robot sectors in the future.

From the perspective of production efficiency, robotics is also significant. SeAH Mechanics is working on improving production efficiency by automating the deburring process with collaborative robots. Deburring is the process of removing unnecessary protrusions or rough edges that occur during metal processing. Previously, this required a large workforce, but automation can reduce labor costs and improve productivity.

Researcher Lee evaluated, "If automation of the deburring process using collaborative robots is implemented, it can ease the burden of deploying hundreds of workers and, through cost reduction and production efficiency, enhance cost competitiveness in a multi-product parts manufacturing structure."

He added, "The robotics business is a key variable for the company’s mid- to long-term growth. If robot parts supply expansion and process automation are combined, a revaluation of the company’s value due to its integration into the robot value chain could be possible."

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