"KRW 53 billion in sales in two years"... Hidden 'profitable subsidiary' emerges

[Financial News] Cheonghan Electronics, a subsidiary of KOSDAQ-listed ATUM, is expanding its business by focusing on multilayer ceramic capacitors (MLCCs) for artificial intelligence (AI) servers and memory semiconductors. Attention is focused on whether growth at the subsidiary, alongside ATUM's planar transformer business for electric vehicles (EVs) and AI data centers, will lead to a reassessment of the company's value.
According to financial investment industry sources on the 3rd, Cheonghan Electronics has set a target of expanding sales from KRW 32 billion this year to KRW 45 billion in 2027 and KRW 53 billion in 2028. Compared with this year, that would represent a 65.6% increase in sales over two years.
Cheonghan Electronics is an ATUM subsidiary that distributes passive components, including MLCCs and resistors, sourced from manufacturers in South Korea and overseas. Its growth opportunities are expanding as demand rises for high-capacity, high-specification MLCCs amid the spread of generative AI and increased data center investment.
Graphics processing units (GPUs) and high-performance switched-mode power supplies (SMPS) use numerous MLCCs to ensure stable power delivery and control. Building on its existing global supply chain and customer base, Cheonghan Electronics is expanding component supplies for high-performance IT equipment, including AI servers and data centers.
The company is also expanding its new memory semiconductor distribution business. Cheonghan Electronics recently signed official distributor agreements with memory semiconductor companies from China and Taiwan and broadened its product lineup. Its strategy is to secure new revenue through cross-selling memory semiconductors to existing passive-component customers.
The memory semiconductor business, in particular, is growing rapidly. The company expects related sales to rise from KRW 8 billion this year to KRW 13 billion in 2027 and KRW 18 billion in 2028. That represents a 125% increase over two years. The business's share of total sales is also expected to rise from 25% this year to approximately 34% in 2028.
The existing passive-component business is also expected to maintain its growth. The sales target for passive components is KRW 24 billion this year, KRW 32 billion in 2027, and KRW 35 billion in 2028. This would be a 45.8% increase from this year.
The business connection with parent company ATUM is also drawing attention. ATUM is expanding from the existing EV market into the power-component market for AI data centers, led by its high-efficiency planar transformers. Analysts say the companies' business overlap in the AI data center power-component market could grow, as ATUM supplies planar transformers, a key component in power conversion, while Cheonghan Electronics has secured a supply chain for passive components such as MLCCs.
An industry official said, "AI data center power supplies use power conversion and control components together, including high-efficiency transformers and high-specification MLCCs." The official added, "As the related market expands, the business synergies between the two companies could also grow."
ATUM's existing automotive electronics business is also broadening its customer base. It is expanding its order base in the automotive electronics sector through component supplies for Hyundai Mobis's next-generation EV platform, collaboration with LS Automotive, and projects related to North American electric commercial vehicle maker Harbinger Motors.
A securities industry official said, "While ATUM is expanding orders in the automotive electronics sector, Cheonghan Electronics's MLCC and memory semiconductor businesses are also growing." The official added, "As the subsidiary's contribution to earnings increases, it could also have a positive impact on ATUM's corporate value."
[email protected] Choi Doo-sun Reporter