[Click eStock] "SKIET, Equipped with Capital Strength, CAPEX Barriers, and Cost Structure" Three Essentials

[Asia Economy Reporter Park So-yeon] Kim Hyun-soo, a researcher at Hana Financial Investment, gave a positive evaluation of SKIET, which is scheduled to be listed on the 11th, from three perspectives: capital strength, capital expenditure (CAPEX) entry barriers, and cost structure.

According to the financial investment industry on the 9th, Kim Hyun-soo mentioned in a recent report, "The factors that currently create value premiums for secondary battery material companies are three: capital strength, CAPEX entry barriers, and cost structure."

Researcher Kim evaluated, "SKIET has a debt ratio of 65%, which is very sound compared to competitors and the average of secondary battery material companies, and it is positive in that it is backed by SK Innovation's capital of 15 trillion won."

He said, "One of the main factors determining the entry barriers of the material industry is the scale of required CAPEX," and added, "If the CAPEX amount required for the material industry to respond to 1GWh of electric vehicle batteries is listed in order from largest to smallest, it is separator-cathode-anode-copper foil-electrolyte."

He continued, "In the case of the separator industry, since it is the industry that requires the most CAPEX among material industries, it is judged that a high multiple can be granted."

Researcher Kim Hyun-soo judged, "Materials with a high proportion of variable costs are relatively more vulnerable to margin pressure due to future raw material price increases, so material companies in industries with a low proportion of variable costs and a high proportion of fixed costs will have stronger margin defense."

He added, "If the material groups are listed in order of the highest proportion of fixed costs, it is anode-separator-copper foil-electrolyte-cathode."

He said, "Summarizing these contents, we apply a target price-earnings ratio (Target PER) of 39 times to the expected earnings per share (EPS) of SKIET in 2023 (domestic material companies' Target PER 30 times, 30% premium) and present a target price of 148,000 won."

Meanwhile, SKIET, established in 2019 after being spun off from SK Innovation, is a company that produces battery separators, an essential material for lithium-ion secondary batteries.

Last year, it achieved sales of 460.3 billion won and a net profit of 90.7 billion won.

The opening price will be determined by accepting bids between 90% and 200% of the public offering price of 105,000 won from 8:30 a.m. to 9 a.m. on the listing day, and the price at which the sell and buy bids match will be set.

Based on this opening price, a price limit of plus or minus 30% will be applied during the trading session.

If the opening price is formed at twice the public offering price and soars to the upper limit, SKIET's stock price on the listing day can rise up to 273,000 won.

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