MNC Solution, a South Korean company specializing in motion control for defense, is expected to exceed a backlog of 1 trillion won this year after securing several significant supply contracts. MNC Solution, which supplies key components to major domestic defense companies, has experienced rapid sales growth in recent years.
According to the Financial Supervisory Service’s electronic disclosure system on the 20th, MNC Solution recently signed a contract worth 23.7 billion won to supply components for Hanwha Aerospace’s 'Cheonmu (K-239)' multiple launch rocket domestic third production project. MNC Solution delivers hydraulic systems used in the launchers of Cheonmu, which control hydraulic power supplied from the main pump to drive the launchers up, down, left, and right, adjusting them to the correct position.
MNC Solution also announced last month that it had signed a single sales and supply contract with Hyundai Rotem. The company did not disclose the details or scale of the contract for the sake of maintaining business confidentiality, but it is presumed to be a supply contract for components for the K2 tank. MNC Solution supplies the electric drive system for the cannon and turret of the K2 tank, which boosts the vehicle's 24VDC power to 260VDC, allowing for more precise control of the turret.
MNC Solution is credited with leading the localization of various weapons systems by successfully developing and mass-producing the country's first defense servo valve in 1999. The servo valve is a product that precisely controls fluid flow and pressure using fine electric current signals and is utilized in various fields including testing equipment, steelmaking, aerospace, and robotics.
MNC Solution's predecessor, Motrol, was under Doosan Group and was sold to the Socious PE-Well2See Investment Consortium during Doosan Group's restructuring process in 2021. Afterward, MNC Solution was established at the end of 2023 when the defense business sector of Motrol was partitioned. MNC Solution is supplying key components to major domestic defense companies such as Hanwha Aerospace, Hyundai Rotem, LIG Nex1, and Korea Aerospace Industries.
MNC Solution recorded sales of 282.8 billion won and operating profit of 34.5 billion won last year, marking increases of 54% in sales and 70% in operating profit compared to the previous year. The proportion of exports in total sales is rapidly growing, standing at ▲8.6% in 2022, ▲38.6% in 2023, and ▲52.6% in 2024. This is attributed to the expanded indirect export results through domestic system companies. Securities analysts project that MNC Solution's sales will reach 378.3 billion won and operating profit will be 47.3 billion won this year, representing increases of 34% and 37%, respectively, compared to last year.
MNC Solution secured a backlog of 957 billion won last year by signing supply contracts worth a total of 509.9 billion won, marking a 31% increase compared to the previous year. This year, the backlog is expected to exceed 1 trillion won.
Bae Seong-jo, a researcher at Hanwha Investment & Securities, noted, "This year, domestic defense export achievements are expected to reach $20 billion (approximately 29 trillion won), including the second contract for the K2 in Poland. MNC Solution's trend in revenue improvement is also expected to continue."