The battery back-end equipment company PNE Solution forecasts that this year's results will be the largest since the year of the company's establishment. Sales and operating profits are both expected to grow at the same level as last year.
Jeong Dae-Taek, the CEO of PNE Solution, met with reporters after the 15th general shareholders' meeting held at the Suwon headquarters in Gyeonggi-do on the 25th, saying, "I expect sales to rise in accordance with the boom of the battery industry. Thus, in line with the production capacity, investment will be made.”
The PNE Solution is mainly focused on formations, which means activation after secondary batteries, and cycler equipment. Formation equipment plays a role of flowing a constant current so that the secondary battery operates normally, and repeatedly charging and discharging. Activated batteries are subjected to performance and life test and stabilization through a cycler. More than 80% of the total sales of the company come from here. Last year, the sales were 102.7 billion won and the operating profit was 11.7 billion won, up by 39.6% and 33.9% from 2017. It is the company’s highest ever performance. The growth rate is expected to be similar this year. In the securities market, it is estimated that the PNE Solution will achieve sales of 130.5 billion won and operating profit of over 15 billion won this year.
The new plant located next to the headquarters in Suwon, began operation in September last year. PNE Innotek, a subsidiary responsible for the power supply business, uses 70% of the plant. The remaining 30% is used to make battery back-end equipment. Production capacity is already full, thanks to securing LG Chem, Samsung SDI, and SK Innovation as the company’s customers.
LG Chem and Samsung SDI account for 40% of the total sales. SK Innovation is aggressively investing in a battery plant, which the company expects to experience a trickle-down effect.
The company is also actively pursuing the Chinese market. In 2017, the company invested 1.2 billion won to acquire a 49% stake in Beijing Daewha Pinai Science Technology Co., Ltd. The results have already been realized. Last year, 20% of the sales, worth 20 billion won, occurred in the Chinese market.
"The orders from Chinese battery companies, in addition to Korean companies, are also increasing constantly. We are also working on preparations for battery makers that will move production bases to South America and India," said a PNE Solution official.