[Click eStock] "CIS Achieves Strong Performance Despite COVID-19... Solid-State Battery Commercialization to Be Accelerated"

[Asia Economy Reporter Hyungsoo Park] KTB Investment & Securities analyzed on the 15th that CIS achieved strong performance in the first quarter despite the COVID-19 pandemic. The target stock price was raised from 4,500 KRW to 5,500 KRW. The investment opinion was maintained as 'Buy.'

Kim Youngjun, a researcher at KTB Investment & Securities, explained, "Despite COVID-19, the existing supply schedule proceeded smoothly," and "The first quarter performance recorded an operating profit margin of 15%, achieving strong results."

He added, "70% of the sales in the first quarter of this year were generated overseas," and "The second quarter performance is expected to be sluggish due to the full impact of COVID-19."

Furthermore, he emphasized, "Even if the second quarter performance is weak, due to the nature of equipment companies, deferred sales will be reflected in the second half," and "COVID-19 affects the timing of product delivery but will not have a significant impact on the annual performance."

This year, CIS is estimated to achieve sales of 185 billion KRW, operating profit of 25.9 billion KRW, and net profit of 19.9 billion KRW. Sales are expected to increase by 17% compared to last year, while operating profit and net profit are projected to grow by 22% and 64%, respectively.

Researcher Kim analyzed, "Considering the new orders of 37.1 billion KRW in April, growth will continue next year," and "there is significant potential for stock price increase due to valuation rises in the secondary battery industry."

He noted, "On the 13th, there was a discussion between Samsung Group and Hyundai Motor Group regarding next-generation batteries, solid-state batteries," and "The commercialization timeline of solid-state batteries, initially expected after 2025, may be accelerated."

CIS, which holds patents for solid electrolyte manufacturing, is expected to continue attracting attention.

This content was produced with the assistance of AI translation services.