Supplied antenna and filter units to Samsung Network Division this year
Gigarain, which has a strong operating loss for three consecutive years this year, is expecting a turnaround next year through full-fledged supply of base station parts for Samsung Electronics’ network division. On the 22nd, Gigarain announced its decision to increase capital of 21 billion won by the largest shareholder. The unit price per share is 2283 won. It is more than twice the conversion price of 1,100 won of convertible bonds (CB) issued by Gigarain this year.
A Gigarain official said, “The capital scale was somewhat weak, but the largest shareholder reorganized its financial structure through additional investments,” said a Gigarain official. “Next year’s sales will vary depending on the overall investment in the 5G mobile communication (5G) industry,” he said. “It will definitely be better than this year.”
Giga Lane has a strong operating loss for three consecutive years this year. In the third quarter of this year, it recorded an accumulated sales of 42.3 billion won and an operating loss of 7.9 billion won. Last year’s sales and operating losses were 72.8 billion won and 29.6 billion won. In 2018, it recorded 124.8 billion won in sales and 2.5 billion won in operating loss.
Kepler Value Partners and Neoflux 3rd Private Equity Fund (Neoflux) decided to increase capital by 11 billion won and 10 billion won respectively. The payment date is the 30th. Kepler Value Partners is the largest shareholder with a 31.71% stake in Gigarain as of the 11th of this month. Neoflux 3 Private Equity Partnership is the second largest shareholder of Rock Pal, the 100% parent company of Kepler Value Partners.
Gigarain’s real largest shareholder is Hyun-Je Kim, Executive Director. He is the son of former chairman Kim Jeong-gon, who acquired Gigarain in 2006. Former Chairman Kim sold all of his personal shares worth 23.8 billion won in 2017 to Kepler Value Partners. After several transactions were made, Rock Pal became the 100% largest shareholder of Kepler Value Partners. Managing Director Kim currently owns a 44% stake in Rock Pal.
Lee Sang First Private Equity Investment Joint Stock Company (Sang Partners) currently holds convertible bonds worth KRW 16 billion. Gigarain issued convertible bonds to the Lee Sang-Cheil Private Equity Partnership in March (9 billion won) and August (7 billion won) twice this year. The conversion price is 1126 won and 1117 won, respectively. The stock can be converted from August next year.
An item that Gigarain expects to increase in sales is the antenna filter unit (AFU). The securities industry is predicting that next year’s AFU will generate early sales of 100 billion won. It is reported that the mass production of AFU has recently begun. Gigalane’s AFU customer is currently one of the Samsung Electronics Network Division.
Gigarain elected President In-Kwon Choi as the representative at the regular shareholders’ meeting earlier this year. It has been two years since I joined Giga Lane in February 2018. Choi Sang-pyo worked at Samsung Electronics for 30 years from 1984 to 2014. He was the head of the hardware group at Samsung Electronics Network Division.
Gigalane makes AFU by assembling a homemade antenna and a filter purchased from the outside. As antenna integrated RUs begin to be used in 5G equipment, the application of AFU is expanding. In the existing 4G RU, the radio signal processing unit (RRH) and antenna equipment were physically separated and designed, so a filter was attached to the 4G RRH and the antenna equipment was separate.
Copyright © The Elec, the electronic component specialty media Unauthorized reproduction and redistribution are prohibited.