Boasts Prowess in Wireless Charging Technology
The author is an analyst of NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com. -- Ed.
Boasting outstanding technological prowess in the wireless charging market, Amosense stands to benefit from an expanded scope of application for wireless charging. The company has secured next-generation automotive electronics and IoT technologies such as UWB, key sharing system, and hydrogen sensor module technologies, and is expected to reap profits in earnest from these technologies, starting from this year.
Boasts differentiated competitiveness for wireless charging solutions
Established in 2008, Amosense specializes in the production of cutting–edge materials (eg, shielding sheets for wireless chargers and LTCC substrates) and modules (including wireless charging, automotive, and lighting modules). In 2020, the firm’s sales broke down as shielding sheets for wireless chargers (33.9%), wireless charging modules (31.0%), automotive modules (2.3%), lighting modules (11.7%), and IoT devices (0.7%).
Standing as the world’s first developer of shielding sheets for wireless chargers (which were applied to the Galaxy S6), Amosense boasts differentiated technological capabilities for wireless charging solutions. Of note, Amosense likely represents around 73% of wireless charging module supply at its major client, and 40% of shielding sheet supply. While Amosense’s earnings have been significantly sapped by vendor addition at the client, earnings are predicted to climb down the road, given that having been mainly available on smartphones thus far, wireless charging is to be increasingly applied to wearable devices such as wireless earbuds and smartwatches.
To reap profits from next-generation automotive electronics and IoT technologies
Amosense has invested roughly 20% of its sales in R&D over the past three years, thereby securing next-generation automotive electronics and IoT technologies, such as ultra-wide band (UWB), key sharing system, and hydrogen sensor module technologies. These efforts should lead to full-fledged profit generation from this year. UWB has garnered attention as a next-generation wireless technology as it stands out in terms of accuracy and security. As a UWB module partner for NXP (a semiconductor company), Amosense is expected to mass-produce automotive UWB modules and next-generation digital keys from this August, which should represent the world’s first commercialization of such products.
As a promising materials/parts company, the firm is eligible for special exemption of certain Kosdaq listing requirements. A total of 2.78mn shares are to be publicly offered (2.22mn new shares and 556,000 existing shares). The capital raised from the planned IPO is to be directed towards capacity expansion (W12.56bn), R&D activities (W11.59bn), and debt repayment (W5.71bn). Based on the IPO price band and 2023F earnings guidance, the firm’s 2021E P/E ranges over 10.0~12.3x.