SIGNET EV's stock price soars on news of SK acquisition

Image captured from the website of SIGNET EV / Courtesy of SIGNET EV

By Anna J. Park

SIGNET EV, a Korean manufacturer of electric vehicle (EV) chargers, saw its stock price continue to rise, reaching a 52-week record high Friday, on news that SK Inc. had decided to acquire the firm. SIGNET EV is listed on the Korea New Exchange or KONEX, a securities exchange exclusively for small and medium-sized companies as well as venture startup firms.

SIGNET EV's stock price closed at 49,200 won ($44), Friday, up 0.72 percent from the previous day. The stock price had earlier reached an all-time high of 56,100 won at the start of the trading session.

Despite fluctuating daily, the charger company's stock has been on a bullish trajectory this year ― its share price has more than doubled from 24,000 won at the end of last year. During the last three-and-a-half months, the price has increased 105 percent.

The bullish trend accelerated even more about a month ago, prior to the acquisition deal with the investment arm of SK. It closed at 30,000 won March 16, but has since risen 64 percent.

Behind the recent price surge lies the company's solid growth. SIGNET EV achieved its first net profit last year, while operating profits surged seven-fold compared to 2019.

According to an official filing, SIGNET EV achieved a net profit of 1.53 billion won, bouncing back from the previous year's net loss of 1.8 billion won. The company's annual revenue surged 43 percent year-on-year, rising to 61.89 billion won from 42.4 billion won in 2019.

Most of the revenue came from overseas markets, particularly in the EV fast charger sector. Revenue from that business rose to 51 billion won in 2020 from 28 billion won in 2018. SIGNET EV was split off from SIGNET Electronic Systems in 2016, and has been exporting its charging equipment overseas, including the U.S.

Impressed with the stable growth of the EV charger company and the stock's popularity among investors, SK Inc. decided to acquire a 55.5 percent stake in the firm, or 7.5 million shares, for 293.2 billion won. The acquisition of the shares will be completed July 15. The move is part of SK's long-term vision of expanding its investment portfolio as well as gaining the lead in green and future mobility technology in the global market.