ESSENTECH’s Refrigerant Valve Exports Rise 16% as Shift to Eco-Friendly Products Boosts Profit

[Financial News]  ESSENTECH, a company specializing in refrigeration and air-conditioning components, is maintaining double-digit growth in exports of refrigerant ball valves. As the global refrigeration and air-conditioning market shifts toward environmentally friendly refrigerants, the increase in exports is translating into improved performance.
According to ESSENTECH on the 15th, exports of refrigerant ball valves totaled 583,174 units from January through August this year, up 15.8% from 503,440 units during the same period last year. Cumulative exports came close to 600,000 units in just eight months.
The recent trend has been particularly notable compared with the beginning of the year. Although export volume declined year on year in January and February, it exceeded the figures for the same months a year earlier for six consecutive months from March through August. July exports increased 21.2% from the same month last year.
Growth continued on a quarterly basis as well. Exports rose 14.4% year on year in the first quarter, while the growth rate widened to 19.4% in the second quarter. Combined volume in July and August also increased 13.3% from the same period last year.
The increase in exports is improving profitability. ESSENTECH’s separate, non-consolidated revenue rose 18.1% year on year in the first half of this year, while operating profit jumped 111.7%. With profit growth far outpacing revenue growth, the company is also seeing an operating leverage effect from the increase in export volume, analysts said.
Refrigerant ball valves are components used in refrigeration and air-conditioning equipment to shut off or regulate the flow of refrigerant.
As global environmental regulations have tightened, the refrigeration and air-conditioning industry has been shifting to refrigerants with lower global warming potential (GWP). As a result, technology and reliability that enable related components to work with new refrigerants are becoming increasingly important.
ESSENTECH plans to expand its product lineup and customer base for environmentally friendly refrigerants, building on its existing overseas customers. Beyond simply increasing export volume, upgrading its product mix during the global transition to new refrigerants is expected to be key to improving profitability in the future.
An ESSENTECH representative said, "Exports of refrigerant ball valves have continued to exceed the figures for the same months last year since March," adding, "We will strengthen the foundation for growth in our overseas business by expanding products for environmentally friendly refrigerants and securing new customers." 


[email protected] Kim Kyung-ah Reporter