[Edaily Reporter Shin Ha-yeon ] On the 23rd, Yuanta Securities Korea assessed that mPlus Corp(259630)is securing differentiated profitability despite the sluggish business conditions in the secondary battery equipment industry. While noting that the company’s profitability-focused, selective order-winning strategy is yielding results, the firm also highlighted the growth potential of new businesses such as robotics and all-solid-state battery equipment. No specific investment opinion or target price was provided.

Kwon Myung-jun, an analyst at Yuanta Securities Korea, stated in a report released that day, “Despite delays and cancellations in numerous lithium-ion battery fab projects, improvements in profitability are evident.” He added, “The company has prioritized profitability over low-price bids in securing orders and recognizing revenue, and it is clear that it has selectively secured projects with a high likelihood of revenue recognition.”

mPlus Corp is a company that manufactures key equipment—such as notching and stacking machines—used in the assembly processes for pouch and prismatic batteries during the secondary battery manufacturing process. Founded in 2003, the company was listed on the KOSDAQ market in 2017.

mPlus Corp’s operating profit margin improved to 7.0% in 2023, 7.8% in 2024, and 13.3% last year, following losses recorded in 2021 and 2022. In the first half of this year, it rose to 17.1%, demonstrating a trend that set it apart from other major domestic manufacturers of secondary battery assembly equipment.

Particular attention was drawn to the fact that profitability improved even as revenue declined. In 2023, revenue was 340.1 billion won and operating profit was 23.9 billion won, but last year, despite revenue falling to 184.2 billion won, operating profit increased to 24.6 billion won.

Analyst Kwon commented, “Comparing the 2023 results with last year’s shows that the revenue threshold required to exceed the break-even point (BEP) has been lowered,” adding, “The company is establishing a favorable position for improved profitability.”

In fact, the cost of sales ratio fell by 9.3 percentage points, from 88.2% in 2023 to 78.9% last year, and selling, general, and administrative expenses also decreased from 16.41 billion won to 14.31 billion won.

The recent expansion of its customer base through new orders was also viewed positively. On the 6th, mPlus Corp secured a contract to supply prismatic notching and stacking equipment to a global European battery company. Analysts note that this contract is particularly significant because it involves the supply of equipment for multipurpose special models used in the defense sector, rather than for electric vehicles (EVs) or energy storage systems (ESS).

Analyst Kwon stated, “This is viewed as a reference that signals promising potential for expansion into the special-purpose battery sector.”

He identified robotics and all-solid-state battery equipment businesses as new growth drivers. The autonomous manufacturing system (mEDAS) developed by mPlus Corp is a technology that utilizes accumulated manufacturing data to detect equipment malfunctions early and supports real-time problem-solving and process management.

Researcher Kwon predicted, “We expect its application to expand at sites in North America, Europe, and other regions where labor costs are a significant burden.”

The company is also participating in a government-funded demonstration project for Artificial Intelligence Mobile Robots (AIMR), which mount multi-joint collaborative robot arms on autonomous mobile robots. The company aims to complete development in the first half of next year and plans to enhance competitiveness by integrating robot hardware and the autonomous manufacturing system into existing equipment in the future.

The all-solid-state battery equipment business is also worth noting. mPlus Corp has secured a lineup of technologies and equipment related to all-solid-state rechargeable batteries and is currently conducting verification and performance evaluations of equipment such as automated electrode feeding systems—which utilize robot-based automated cell material transport systems—and ultra-high-speed notching equipment.

Researcher Kwon noted, “The company possesses all-solid-state rechargeable battery technology and is building and expanding its equipment lineup,” adding, “Since verification and performance evaluations of the related equipment are underway, we believe there is a high likelihood that these products will be included among the options available to customers once the market takes off.”