Hi Investment & Securities predicted on the 8th that new orders for solution advanced materials and expansion of copper foil for battery anode plants in North America will begin in earnest.
Analysts say that it is likely to expand its market share in copper foil for battery anode as it is the only one in Europe that has production facilities.
It is expected that stock prices will continue to rise due to gradual improvement in earnings, including a turnaround to surplus in the battery sector in 2022.
Maintaining investment opinion 'buy', the target price was raised by 10% from 100,000 won to 110,000 won.
Hi Investment & Securities said, "The upward momentum of solution advanced materials has been strengthening since the fourth quarter. In particular, we should pay attention to the possibility of securing new orders for copper foil for battery anode 2 plants.".
"The production capacity (CAPA) of the second plant, which is scheduled to operate in the second half of 2022, is 18,000t, which is 50% larger than the first plant," Hi Investment & Securities said.
"Considering that long-term supply contracts were signed with LG Chem and SKon a year and a half before the time of operation of the first plant in the past, we are expected to win new orders for the second plant by the end of this year.".
Based on the amount, it is estimated to reach about 300 billion won annually.
Hi Investment & Securities explained, "The construction of new plants in North America as well as Europe is expected to begin in earnest.".
The production capacity of the North American plant is estimated to be up to 60,000t, and its production capacity, including this, will expand from 12,000t to 150,000t in 2021, and its share in the battery market will rise rapidly. ".
Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com
