Hanwha Securities noted on the 14th that through the absorption merger with Hanwha Intelligence, Edge Foundry could generate synergies with the Hanwha Group. No investment opinion or target stock price was presented. The closing price of Edge Foundry on the previous trading day was 4,255 won.
Founded in 2006, Edge Foundry is a corporation that develops and sells products including sensors used in APS (Accelerator), BPS (Brakes), and SLS (Stop Lamp Switch), as well as infrared thermal imaging sensors and modules. Its competitiveness is highlighted by its manufacturing technology for infrared thermal imaging sensors installed in key military weapons.
On Dec. 6th of last year, Edge Foundry decided to absorb Hanwha Intelligence at a ratio of 1:13. On the 10th, Hanwha System became the second-largest shareholder (approximately 8.9% equity) of Edge Foundry by allocating about 6.86 million newly merged shares. Choi Jae-ho, a researcher at Hanwha Securities, said, "After the merger, it is expected that the company will secure a global competitive advantage through the expansion of application products based on core technology for infrared thermal imaging sensor technology."
Research Institute Choi noted, "Particularly, infrared sensors are used not only in the defense industry but also in satellites and astronomical observations, so the expansion of product application areas with Hanwha Aerospace, Hanwha System, and other Hanwha Group companies is expected to be a focal point."
The application areas for uncooled infrared sensors are expected to expand. Research Institute Choi explained, "A small number of specific companies hold core technology and are monopolizing the market. The company is currently focusing on developing uncooled types that can expand application fields not only for military use such as rifles but also for civilian use including battlefield, drones, and robots, and has completed the development of a low-cost uncooled infrared sensor product in QVGA grade and is currently in mass production."
He continued, "Currently, other companies are supplying military-grade cooled infrared sensors domestically, but since Edge Foundry's cooling method is different, there will be no overlap in the application areas aimed at the defense industry."