Splendid Achievement by Hyundai Motor's In-House Venture... 'POLED' Breaks Through the Baby Product Winter to Count Down KOSDAQ Listing

'Overwhelming Surplus' with 9.3 Billion Won in Operating Profit in Just 3 Quarters Amid the Baby Product Industry's Swamp of Deficits... Aiming for KOSDAQ Listing in the First Half of the Year Preparing to Leap Forward as a Global Lifestyle Company Based on the 'Safety First' Technology of Former Hyundai Motor Researchers

Premium childcare products specialist POLED has finally passed the preliminary listing review by the KOSDAQ Market Division of the Korea Exchange, making full-scale preparations for its KOSDAQ market listing. This is an achievement made about six years after spinning off from a Hyundai Motor Company in-house venture in 2019 to launch as an independent corporation.

While a significant number of listed baby product companies are unable to escape deficits due to the aftermath of the low birth rate, POLED is receiving heated attention from the capital market as it proved its outstanding business performance and growth potential by recording an operating profit margin well over 10%. NH Investment & Securities is serving as the lead manager for the listing.

(Source: POLED website)

Unrivaled Safety of '0 Injuries' Created by Hyundai Motor Researchers

POLED's biggest competitive edge is its 'overwhelming safety technology' implanted with Hyundai Motor's DNA. CEO Lee Hyung-moo, a graduate of Kyungpook National University's Department of Mechanical Engineering who was in charge of chassis design at Hyundai Motor, along with core researchers with over 10 years of experience in collision safety and eco-friendly vehicle development, joined forces to create 'safe car seats containing a father's heart.'

The car seats they developed have not only passed European (EURO-NCAP) and domestic (KC) certifications but have also undergone internal crash tests at the Hyundai Motor R&D Center, something regular baby product companies hardly dare to attempt. In particular, to pass Hyundai Motor's internal verification, they applied a meticulous design that withstands a severity level more than twice the European certification standard.

Based on this confidence in quality, POLED offers an 'Exchange' service that replaces car seats with new products free of charge in the event of a traffic accident, and has continued the great record of not a single injury occurring since the brand was established in 2019.

Surpassing Previous Year's Revenue in Just 3 Quarters... Shaking Off Derivative Losses and Soaring with '10% Net Profit Margin'

Ahead of its IPO, POLED's greatest weapon is its clear trend of earnings growth. On a cumulative consolidated basis up to the third quarter of last year, it recorded revenue of 61.8 billion won, operating profit of 9.3 billion won, and net profit of 6.4 billion won.

In particular, accounting book issues that previously ate away at POLED's net profit have been completely resolved. Until 2024, there was a limitation where net profit was recorded lower than actual profitability due to valuation losses on derivatives arising from issued convertible bonds (CB) and redeemable convertible preference shares (RCPS). However, ahead of the preliminary listing review request, by converting all such bonds into common stock, the financial cost risk was cleanly shaken off, allowing its full profit generation ability to be reflected in the financial statements.

In the market, applying a price-to-earnings ratio (PER) of about 15 times, which is that of Agabang & Company, the largest among the baby product peer group (comparable companies), it is forecasted that POLED's estimated market capitalization after listing will reach the 120 billion won to maximum 150 billion won range. The analysis is that POLED's investment attractiveness is much higher in terms of revenue growth and profitability.

Leaping into a 'Global Family Lifestyle Company' through Product Diversification and Export Expansion

Revenue diversification and expansion into the global market are also proceeding smoothly. In addition to its initial flagship products, car seats and the ventilated/heated seat 'AIRLUV', it has significantly expanded its baby appliance portfolio by acquiring a 100% stake in five subsidiaries, including 'UPANG', a company specializing in baby bottle sterilizers with high performance contributions.

The export proportion also surged from 13.6% in 2023 to 24.8% (15.3 billion won) on a cumulative basis up to the third quarter of last year. Receiving close support from the Chungnam Economic Promotion Agency, participating in the Canton Fair in China, and establishing a local corporation in Tokyo, Japan, it is overcoming the limitations of a small and medium-sized enterprise and establishing itself as a leading representative of K-childcare products encompassing Asia.

With the public offering funds secured through this KOSDAQ listing, POLED plans to invest heavily in strategic infrastructure such as strengthening research and development (R&D) capabilities, advancing product safety technology, and establishing a logistics center.