NewPower Plasma, Expecting Performance Improvement with Increased Sales to China - iM Securities

[Financial News] iM Securities predicted that NewPower Plasma's performance improvement will accelerate as sales to China increase due to the benefits of the US-China trade war.
On the 14th, Sangheon Lee, a researcher at iM Securities, said, "NewPower Plasma supplies to Samsung Electronics and Applied Materials process equipment manufacturers," adding, "In 2022, overseas sales accounted for 39.0% of the total sales of 114.2 billion KRW, with overseas sales of RPS for chambers reaching 42.6 billion KRW."
NewPower Plasma's main product, RPS, is a key cleaning module that removes residual gases, which are by-products remaining in the equipment chamber after thin-film processes in the semiconductor and display industries, by generating plasma.
In an environment where global three companies monopolize, competitors excluding NewPower Plasma are American companies. In this environment, as the US-China trade dispute intensifies, American companies have found it difficult to supply to Chinese local companies. NewPower Plasma began supplying RPS, which typically has a replacement cycle of 2-3 years, from the second half of 2023, leading to an increase in overseas sales to China.
The researcher said, "As sales to Chinese local companies become full-fledged, the company's separate performance last year recorded a 23% increase in sales to 144.6 billion KRW and a 51.1% increase in operating profit to 27.8 billion KRW compared to the previous year," adding, "As RPS overseas sales increased to 85.9 billion KRW, the overall overseas sales ratio rose to 64.6%."
This year, due to the nature of RPS, which typically has a replacement cycle of 2-3 years, sales to Chinese local companies are expected to continue to increase, accelerating performance improvement in a high operating profit margin environment.
Furthermore, as NewPower Plasma's subsidiary Dowinsys is set to go public this month, it is evaluated that if Dowinsys's growth potential becomes full-fledged through diversification of sales channels, the value of NewPower Plasma's holdings will also likely be highlighted.

nodelay@fnnews.com Jiyeon Park, Reporter