[Edaily Reporter Shin Ha-yeon] On the 17th, Meritz Securities assessed that #HiVisionSystem’s energy storage system (ESS) business has established itself as a new growth driver, while its core mobile testing equipment business is also entering a recovery phase. The firm did not provide a target price or investment recommendation.

Yang Seung-soo, an analyst at Meritz Securities, stated, “The scale of a recent contract to supply ESS battery pack assembly equipment has expanded from the original 19.2 billion won to 95.0 billion won, which accounts for 55.5% of last year’s revenue,” adding, “This order is understood to be for the supply of three ESS battery pack assembly production lines to North America to meet the growing demand for ESS in AI data centers.”

He further assessed, “This contract is highly significant as it marks the first major order secured from a global battery pack manufacturer,” adding, “It will serve as a starting point for expanding our track record in the rechargeable battery equipment business.” The company further noted, “As rising power demand from AI data centers intersects with the need to ensure grid stability, ESS is emerging as a core power infrastructure,” adding, “There is a high likelihood of securing additional orders in the future as investment in ESS for North American data centers expands.”

Analysts also note that the company’s core mobile testing equipment business is showing signs of a rebound. Although performance was sluggish last year due to a slowdown in the smartphone market, the company expects to see positive effects this year from changes in major clients’ new product strategies and the diversification of their production bases.

Researcher Yang explained, “North American clients are pushing to adopt new form factors, such as foldable models and 20th-anniversary commemorative models,” adding, “Changes in camera module structures and specifications will lead to increased demand for testing equipment.”

The expansion of iPhone production in India was also cited as a positive factor. He noted, “In line with the trend of diversifying away from China, iPhone production in India is estimated to have increased by 53% year-over-year,” and predicted, “As major EMS companies begin operations at new factories and module manufacturers continue to enter the market, HiVision Systems—which has secured a head start in the Indian market—will see expanded opportunities to supply equipment.”

The expansion of the XR (extended reality) market was also presented as a growth driver. Analyst Yang said, “We are simultaneously conducting XR-related projects with domestic and international clients,” adding, “We understand that collaboration is taking place for both models equipped with displays and those without.” He further emphasized, “Once the expansion of the XR device lineup—such as smart glasses—gains momentum, demand for related inspection equipment will emerge as a new growth driver.”

HiVision Systems’ annual performance is projected to show revenue of 2913억원, a 70.2% increase year-over-year, and an operating profit of 189억원, marking a return to profitability. The firm forecast further growth by 2027, with revenue reaching 3970억원 and operating profit reaching 377억원.

Analyst Yang noted, “The stock price has fallen more than 40% from this year’s high, already reflecting a significant portion of concerns over the sluggish business environment,” adding, “With the simultaneous emergence of new growth drivers through expanded ESS orders and the potential for a recovery in the core business, a positive stock price trend is expected.”