2024-03-09 22:00:01
stock
Entered2024.03.10 07:00 Modified2024.03.10 07:41
‘Semiconductor mechanical equipment powerhouse’ Sebo MEC
Opening of the first 1 trillion won in sales in 2022
Last year’s operating profit was the highest ever“Strengthening overseas exports to Japan, Malaysia, etc.
Profit margins will increase through factory automation
“We will continue efforts to stabilize the stock price.”Dividend yield alone reaches 6.1%
Seeing is worth seeing. It is better to see something once than to hear it a hundred times. In order to alleviate the information imbalance amidst the flood of fake news, a ‘fighter ant’ with 17 years and 7 months of stock investment experience directly visits listed companies. Review the company’s business status, meet executives and employees, and resolve investors’ questions. ‘Battle ants’ is a word he usually uses to describe a situation in which he invests in stocks to win every time, based on the idea that ‘stocks are a battlefield.’ I am well aware that the pain of loss when investing in stocks is greater than that of anyone else, so I am writing this article today from the perspective of an individual investor. Sebo MEC senior Gil Eun-seong is introducing the Eumseong factory. Reporter Hyunjoo Yoon’s market capitalization is less than 100 billion won (95.9 billion won on the 10th), but he kept his promise of high dividends. This is the story of Sebo MEC, a ‘semiconductor mechanical equipment powerhouse’. This company started as Sebo Machinery Industry Co., Ltd. in 1978 and is participating in various facility construction projects with 13 construction licenses, including mechanical gas facility construction, firefighting facility construction, earthwork, and steel structure construction. It was listed on the KOSDAQ in December 1996, and its name was changed to Sebo MEC (formerly Sebo Machinery) in March 2003. On the 8th, I visited the headquarters of Sebo MEC, which kept its promise to shareholders and took a second leap forward. It is located at Insan Building, 341 Hyoryeong-ro, Seocho-gu, Seoul, an 8-minute walk from Exit 2 of Nambu Terminal Station. Employees of the Mechanical Equipment Division are working on the 4th floor of Sebo MEC’s headquarters. Reporter Hyeonju Yoon
No. 1 in semiconductor primary piping… Customers include Samsung Electronics and SK Hynix.
SEBOMC performs clean room equipment construction for high-tech semiconductor manufacturing facilities, shortens construction period through application of CB (cross beadinf, grid pattern) duct, fluoropolymer coated duct, and modularization method, and conducts new construction, remodeling, and repair of semiconductor manufacturing facilities. The scope of construction is being expanded. It is the No. 1 company in Korea for primary piping construction in the early stages of clean room construction. Major customers include Samsung Group (Samsung Electronics, Samsung C&T, etc.), SK Group (SK Hynix, SK Eco Plant), DL E&C, Doosan Energy, and Kolon Global. Manager Taehoon Han is reviewing the ISO Quality Environment Manual. Reporter Hyunjoo Yoon In particular, fluoropolymer coated ducts, which have a high technological entry barrier, have a domestic market share of 60%. Because it is resistant to fire and can be recycled, orders from semiconductor companies are increasing. We also supply to S Company, a leading Japanese electronics company. Fluoropolymer coated ducts are known to have a special coating on the inside of stainless steel, eliminating the risk of fire when corrosive chemical gases from strong acids or strong alkaline chemicals are emitted during the semiconductor manufacturing process, and are environmentally friendly. It is used in semiconductors, chemical plants, gas production and refining facilities, etc. This technology was transferred from the American company FAB Tech in 2011. Senior Jeong Yoo-seon is examining the field support system. Reporter Hyeonju Yoon
Last year’s operating profit was KRW 37.5 billion, a ‘highest ever’… Profit margin also increases
Performance over the past three years has been upward. It recorded provisional sales of KRW 871.7 billion and operating profit of KRW 37.5 billion last year (based on the Financial Supervisory Service’s Electronic Disclosure System Dart), up from KRW 641.2 billion in sales and KRW 7.1 billion in operating profit in 2020. They jumped 35.95% and 428.17%, respectively, in two years. During the same period, operating profit margin increased from 1.10% to 4.3%. What is unique is that sales exceeded KRW 1 trillion in 2022, and last year, operating profit reached its highest ever. Chief Jeong-hoon Lee (left) and Dong-jin Cho are inspecting the IT system. Regarding Reporter Hyun-joo Yoon, Jin-ho Kim, IR team leader (Chief of External Cooperation Team, Management Support Division) said, “The operating profit ratio is improving due to factory automation,” and “We will share the fruits with shareholders with a stable business model.” He also added, “At the end of last month, we announced a dividend of 550 won per share (market dividend rate of 6.1%),” and added, “We will continue to make efforts to stabilize the stock price.” Kim Woo-young, CEO of Sebo MEC, mentioned consideration of high dividends and share buybacks in a phone interview with the Korea Economic Daily in September last year. At the time, CEO Kim emphasized, “We will increase research and development expenses and expand facility investment to strengthen the competitiveness of semiconductor mechanical equipment technology.” Kim Jin-ho, IR team leader, is being interviewed by the Korea Economic Daily. Reporter Hyeonju Yoon
‘Exemplary dividend student’ for 26 years… Last year’s dividend yield, double the deposit interest
Sebo MEC has maintained its position as a ‘dividend model’ for 26 years since 1998. Dividends per share are upward from 150 won in 2019 → 200 won in 2020 → 250 won in 2021 → 500 won in 2022 → 550 won in 2023. Looking at the dividend yield alone, it is more than twice the interest yield on commercial bank term deposits (based on 2.65% per annum). Senior Yeo Yeong-gu (left) and Senior Cho Hyun-jeung are calculating quantities for sales activities. Reporter Hyunjoo Yoon: What is your business plan for this year? Team Leader Kim responded, “Sales may slow down due to uncertainty in the semiconductor industry, but we will continue efforts to increase operating profit ratio.” He expressed confidence in improving productivity, saying, “We are continuing to invest in factory automation and expanding automated production volume.” Chief Ho-seong Lee (right) and Manager Won-seok Lee are discussing the development of new coated duct products. Reporter Hyunjoo Yoon In fact, the Eumseong factory in North Chungcheong Province (122,535 m2 of land, 43,583 m2 of building) is equipped with several semiconductor production automation equipment to speed up work. Speed and accuracy are essential for semiconductor machinery and equipment when requested by customers, and this competitiveness is being recognized by companies such as Samsung Electronics and SK Hynix. Manager Park Se-won is reviewing firefighting equipment drawings. Reporter Hyeonju Yoon
Company “Preparing for coating duct overseas exhibitions”… Over 80 construction equipment patents
Team Leader Kim said, “We are preparing to enter overseas coating duct fairs to strengthen exports to Japan and Malaysia, and we are expanding our overseas sales force.” He also gave a glimpse of concerns regarding future food sources, saying, “Last month, I participated in the semiconductor industry exhibition (Semicon Korea 2024) and discussed improving technology.” By strengthening research and development, the company applied for a patent for length-adjustable ducts at the end of last year, and holds regarding 80 patents for building equipment products and construction methods. Plant Division Executive Director Seong-Hoon Lee (left) and Senior Director Jin-Kwang Kim are reviewing orders for new plant construction. Reporter Hyunjoo Yoon By completing the 16,500㎡ Pyeongtaek factory in June last year, we expect to strengthen competitiveness and reduce costs through support for Samsung Electronics’ metropolitan area belt (Giheung, Hwaseong, and Pyeongtaek). As Samsung Electronics has decided to invest 300 trillion won (over 20 years) in the Yongin semiconductor industrial complex, it can enjoy mid- to long-term benefits. Sebo MEC headquarters is located in Insan Building, 341 Hyoryeong-ro, Seocho-gu, Seoul. Reporter Hyunjoo Yoon It is a professional construction company specializing in semiconductor mechanical equipment, but it also has a presence in the plant business. We performed Tongyeong LNG base energy facility construction, Shinwolseong Nuclear Power Plant Units 1 and 2 piping manufacturing and installation, and steel structure construction. We have also been in charge of machinery and piping installation work in chemical complexes across the country, including Ulsan, Yeosu, and Daesan. Employees in the construction support department on the 4th floor of the headquarters are concentrating on their work. The number of shares held by Yoon Hyun-joo is 10.53 million, and CEO Kim Woo-young and three related parties are the largest shareholders, holding 47.47% of the shares. Although it is a small stock with a market capitalization of 95.9 billion won, foreign ownership is 8.87%. The treasury stock is 4.99%, which means less than 40% of the shares are in circulation. As of last year, cash assets were 33 billion won and real estate assets were 49.2 billion won. Sebo MEC stock price monthly graph capture.
Stock price rose 4.23% since the beginning of the year… The average daily trading volume for 5 days was only 61,419 shares.
Nevertheless, the stock price is weak. According to the Korea Exchange on the 10th, the stock price rose 4.23% from the beginning of the year to 9,110 won. The average daily trading volume over the past five days was 61,419 shares, showing little interest from individual investors. Based on the current stock price, the daily trading amount is approximately 559.5 million won. It seems that the company needs to think regarding revitalizing transactions. Manager Byung-Hoon Moon (left) and Manager Yong-Woon Jeong are explaining coated duct products. Reporter Hyun-joo Yoon, Jae-mo Lee, CEO of Growth Research, said in a phone call with a reporter that day, “We occupy the top market share in semiconductor primary piping,” adding, “In particular, our flagship product, fluoropolymer coated duct, has a domestic market share of 60%.” He continued, “We are expected to benefit from Samsung Electronics’ plan to expand its clean room seven times by 2027 and its Yongin factory construction plan.” He also analyzed, “Dividends have been rising steadily since 2019, and its attractiveness as a dividend growth stock stands out.” However, he advised, “Primary piping has lower margins than secondary piping, so the number of customers or orders must increase for performance to improve.”
I will run with ‘14 million ants’. I will write a lot of interesting stock articles until the day your stock account turns red. If you click Subscribe and Support Reporter Hyunjoo Yoon on the reporter’s page below, you will be able to check the articles quickly every time.
Reporter Hyunju Yoon [email protected]
1710026582
#bought #companys #stock #year #away.. #deposit
