Solus Advanced Materials will show a profit improvement from the second half (Eugene Investment & Securities)

Eugene Investment & Securities said that it will maintain its investment opinion of 'Buy' and the target of 70,000 won for Solus Advanced Materials. The securities firm analyzed that a clear improvement in profits has been seen since the first half of the year.

"At the battery plant of Solus Advanced Materials, four production lines are currently operating sequentially and is being produced mainly on the first and second lines in the first quarter," said the securities firm, "Four additional lines will begin production in the second half of the year. Since the yields are improving and yet they are still at an early stage, the company recorded loss because of fixed costs."

The securities firm said. "The quarterly sales of battery gourds will increase from 4.3 billion won in the first quarter to 9.5 billion won in the second quarter, 30 billion won in the third quarter and 34.2 billion won in the fourth quarter.".

Profit and loss is expected to reach a turning point from the third quarter. As growth in other sectors such as organic light emitting diodes (OLED) and copper foil continues, it is predicted that full-fledged turnarounds can be confirmed if sales of battery gourds increase. 

Reporter Lee Dong-hoon usinvestmentidea2020@gmail.com