The author is an analyst for NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com -- Ed.
Specialized in rechargeable battery safety solutions, Inics manufactures battery cell pads and fire-resistant barriers. It has successfully secured an initial market for EV safety-related components and acquired major automobile makers and rechargeable battery companies as clients.
Specialized in rechargeable battery safety solutions
Inics specializes in rechargeable battery safety solutions. The company’s main products are battery cell pads and fire-resistant barriers that enhance the stability of pouch-type batteries. Major clients secured by Inics include Hyundai, Kia, Volkswagen, and SK On.
Pioneering initial market for EV safety-related components
Inics’ battery cell pads prevent fires by minimizing external battery deformations that can be caused by expansion/contraction between cells during charging and discharging, and by preventing cell detachment/shocks that can occur during driving. In 2017, the company developed its first battery cell pad, and soon after it received orders as the sole manufacturer for five Hyundai and Kia models in 2018.
The firm’s fire-resistant barriers are located between modules and prevent thermal runaway, delaying the spread of fire. Fire-resistant barriers are crucial components for securing time for passenger evacuation. In 2021, Inics successfully developed a new fire-resistant barrier. It received additional orders for 13 projects following the initial order for Kia’s EV9 in 2022. The adoption of fire-resistant barriers is set to expand amid the enhancement of safety regulations regarding battery thermal runaway in major countries.
As of end-Sep 2023, order backlog at Inics amounted to W344.4bn (W275.9bn for battery cell pads and W68.5bn for fire-resistant barriers). Based on the IPO price band, 2024F P/E comes to 8.4~10.0x. Post-IPO, the floating stock portion should stand at 31.35%.