[Company analysis] Dreamtech (드림텍)

「Dreamtech(드림텍)」is an electronic parts company, and has expanded its business area based on the smartphone module design and development know-how and manufacturing technology cultivated since its establishment in 1998. Up until now, about 80% of total sales tended to depend on the smartphone-related business of「Samsung Electronics」, but as part of business diversification, they partnered with an Israel startup, in order to develop Corona 19 diagnostic kits. The number of employees is about 635.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is KRW 10 million, as of 2019

Company name	Dreamtech Co., Ltd.
Company name (Korean)	드림텍
Company name (Japanese)	ドリームテック
Date of establishment	1998년9월
Headquarters location	경기도 성남시 황새울로 314
Consolidated sales	55,967
Consolidated operating profit	3,046
Consolidated total assets	37,712
Consolidated capital	22,113
Capital adequacy ratio	58.6%
Consolidated number of employees	635

 

 

 

2. Summary and Features

 
「Dreamtech」, an electronic component manufacturer founded in 1998, produces key components for mobile phones such as electric charger, microphone modules, touch screen modules and LCD modules for home appliances. 2007 April,「Uniquest(유니퀘스트」acquired 45% of the stock of「Dreamtech」for KRW 9 billion. And since then the sales have increased steadily. By 2007, the sales amount was around KRW 100 billion, but it became KRW 690 billion by 2017, which is about 7 times bigger than 10 years before.

Behind the above rapid growth, there was a rapid increase in sales of the main product "PBA (FPCB equipped with motor, speaker, touch, touch sensor, etc.)". In particular,「Dreamtech」has started supplying electronic parts for Samsung's "Galaxy" series from 2010, and started to supply fingerprint modules to「Samsung Electronics」, since 2016. Until 2018, they only supplied for low- and mid-priced models, but from 2019, they expanded the lineup by participating in the S series and folder phones.

 

However, about 80% of total sales are made up of smartphone-related module products, and the dependence on sales for「Samsung Electronics」was extremely high. Therefore, it is a company that bears considerable risks in terms of its business portfolio. However, in order to diversify its business, a second factory was built in the Cheonan region of South Korea in 2011. Then they started production of LED modules for automobiles, started the electrical equipment business for automobiles. In addition, they formed promising start-up partnerships around the world to focus on the healthcare field.

Recently, it seems that they acheived a remarkable results in the healthcare field. they co-developed a diagnostic device for Corona 19 infection with Israeli startup「Nanoscent」. It is a principle to diagnose the presence of virus infection by collecting exhaled breath with a dedicated breathing bag, attaching it to an analyzer, and identifying the specific gas contained in the exhaled breath. According to this process, Corona 19 infection can be diagnosed in around 30 seconds.

「Nanoscent」has developed a diagnostic sensor and algorithm, and 「Dreamtech」has developed and provided a modularized breathing bag. Although it is in the early stages of development, if this diagnostic device can be officially approved, it can be used for initial inspection diagnose, targeting multiple users at airports, hospitals, shops, etc. Moreover, if this method is utilized, it can be applied not only to corona 19 but also can be applied to diagnose other respiratory syndromes such as MERS and SARS.

 

 

 

3. Major Business

 

■ IMC (IT & Mobile Communications) business
Develops/provides various PBA modules used in IT equipment

■ BHC (Biometrics, Healthcare & Convergence) business
Biometrics module develops/provides products, modules, etc. that fuse traditional product IT technology

■ AES (Automotive Electronics & Sensors) business
Develops/provides automotive electrical components, optical sensors, etc.

■ New business
Healthcare wireless ECG sensor business, Healthcare surgical sensor business

 

 

 

4. Financial information

 

※Unit is KRW 10 million

		2017	2018	2019
Consolidated sales		67,943	60,155	55,967
Consolidated operating profits		4,058	4,238	3,046
Consolidated total assets		28,051	28,491	37,712
Consolidated net assets		10,954	14,275	22,113
Breakdown of sales	IMC	34,126	23,388	22,133
	BGC	25,950	28,794	23,761
	AES	7,866	7,972	10,073