A Sensor Specialist
The author is an analyst of NH Investment & Securities. He can be reached at kyeongkeun.kang@nhqv.com. -- Ed.
Demand for high-precision sensors is rising across various industries. Sensor specialist Samyoung S&C is able to manufacture materials, module packaging, and finished products. Starting from this year, the launch of next-generation products is expected to improve top- and bottom-line growth.
Sensor specialist -- from sensor materials to finished products possible
Samyoung S&C is a sensor manufacturer with 20 years experience. By product, 2020 sales broke down as chip-type temperature and humidity sensors (47.5%), relative humidity sensors (4.2%), dust sensors (4.1%), and high-precision electronic parts (44.2%). The company has secured long-term customers (such as Ford, Philips, and Carrier) in a range of industries.
Demand for high-precision sensors is rising in various industries, including home appliances, automobiles, and factories. The firm is the only player in Korea capable of manufacturing everything from sensor basic materials to module packaging and finished products. It has a 6-inch micro electro mechanical systems (MEMS) fab featuring semicon processes. The company has also secured high-precision sensor mass production capacity (5mn units pa).
▶ Full-fledged growth centering on next-generation high-value added products
This year, Samyoung plans to launch its third generation HumiChip (platinum thin-film chip-type temperature and humidity sensor), a condensation prediction sensor, AQ-Rite (complex air quality measuring device), and a dew point meter. The company is expected to see full-fledged top- and bottom-line growth, as the number of applications for its sensors expands. In the case of the condensation prediction sensor, it is applied to auto defogging sensors (ADSs) and battery management systems (BMS), as well as in-car sensors. AQ-Rite is part of a pilot project for integrated air quality measurement in Seongnam-si.
Samyoung is scheduled to be listed under the special listing system for technology firms and companies with strong growth potential (A grade credit ratings from Ecredible and NICE Information Service). We forecast 2021 sales of W20.6bn (+51.7% y-y) and OP of W1.2bn (+542.6% y-y; OPM of 5.7%). Based on the offering price and 2021~2023 earnings guidance (20% annual discount rate applied), the firm’s 2021E P/E is estimated at 11.7~15.0x. Of note, 35.5% of shares will be floated on the market after the listing.