Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

YMT IPO Summary - PCB Plating Chemical Company’s Solid Growth Story

The company developed and introduced a new plating method for PCB, which didn't use any lead. This was called "Silver Electroless-Plating Process". Samsung Electro Mechanics Co., Ltd. (009150 KS) was impressed by YMT's new method so it gave YMT a supply contract. YMT also got a supply contract from Daeduck Electronics Co (008060 KS) in the same year. This moment was the beginning of YMT as we know today. YMT finally reached ₩10bil in sales in 2011. But its Silver Electroless-Plating Process method turned out to have several critical shortcomings. As a result, it again had to undergo a difficult time. It soon turned its eye to Gold Electroless-Plating Process, which was technologically more advanced. But Japan's Okuno was dominating this market segment in Korea by then. YMT had a price advantage; however, it wasn't easy to break into this Gold Electroless-Plating Process market segment even in Korea only with cheaper price. So, the company first targeted a niche market in overseas. Its first strategically targeted market was Taiwan. After some time, the company started seeing a fruitful outcome in Taiwan and could gradually attract low-cost Chinese PCB makers as its key clients. During this period, the company developed and launched two key Gold Electroless-Plating Process products: 1. ENIG (Electroless Nickel Immersion Gold) and 2. ENEPIG (Electroless Nickel Electroless Palladium Immersion Gold). ENIG is commonly used in flexible PCB, whose importance is growing very rapidly due to the explosive growth of flexible OLED market.

YMT became Korea's first company to successfully develop and launch ENIG. ENEPIG can be considered as an advanced version of ENIG. With ENIG and ENEPIG, the company could again achieve sales growth. The company has the three main chemical products used in various phases of PCB component processing. They are 1. finish Plating Chemical, 2. copper plating chemical and 3. process chemical. The first one "finish plating chemical" is the one for PCB Surface Treatment. The above-mentioned ENIG and ENEPIG are the specific products of finish plating chemicals, which account for 65.4% of total sales (on a separate company basis) and 47.4% of total sales on a consolidated basis). Other than this finish plating chemical (for PCB surface treatment), the company also supplies copper plating chemical (9.7% in 2016 on a consolidated basis) to be used for plating nonconducting materials with copper to make them conducting materials and process chemicals (9.3% in 2016) used in cleaning, etching, stripping, developing, recovering, etc. The company began to do surface treatment work by itself. In this regard, the company established a subsidiary called "YPT Co., Ltd." So, YMT develops and supplies chemicals, and its subsidiary YPT does actual surface treatment work. In 2016, YPT's actual PCB surface treatment business accounted for 31.7% of YMT's total consolidated sales.

This insight is part of Smartkarma. For more follow this link.



This post first appeared on Smartkarma | Intelligent Investing, please read the originial post: here

Share the post

YMT IPO Summary - PCB Plating Chemical Company’s Solid Growth Story

×

Subscribe to Smartkarma | Intelligent Investing

Get updates delivered right to your inbox!

Thank you for your subscription

×