[Featured Stock] Sama Aluminum, the Last Remaining Secondary Battery 'Gem' Aluminum Foil... Accelerating Re-rating

[Asia Economy Reporter Hyungsoo Park] Sama Aluminum is showing strong performance. It appears that the analysis that the company will expand its business based on the best aluminum foil product competitiveness in Korea has influenced the stock price. The demand is increasing to the extent that the scale of aluminum foil supplied to SK Innovation alone reaches 1.8 trillion KRW.

As of 9:35 AM on the 30th, Sama Aluminum is trading at 25,750 KRW, up 5.97% from the previous trading day.

Founded in June 1969, Sama Aluminum is a manufacturer of aluminum foil for secondary batteries. Its major clients include the three domestic battery companies and Ottogi. In 2012, it became the first in the world to develop high-strength aluminum foil with a thickness of 10㎛. It also possesses ultra-thin foil technology of 4.5㎛.

There are six global companies that dominate the market for manufacturing aluminum foil suitable for electric vehicles. Domestic companies include DI Dongil, Sama Aluminum, and Lotte Aluminum. Environmental issues have made it difficult for Chinese companies to expand, reducing the risk of additional competitors entering the market.

Researcher Boyoung Choi of Kyobo Securities explained, "On average, the thickness used in electric vehicles is 10~11㎛, but Sama Aluminum is preparing for mass production application at 9㎛, which is ahead of Japan," and added, "It is understood that SK Innovation (SKI) procures about 70% of the aluminum foil needed for secondary battery manufacturing from Sama Aluminum."

He continued, "Based on SKI's order backlog of 1000GWh, the sales related to Sama Aluminum amount to approximately 1.8 trillion KRW," emphasizing, "Cell makers have secured EV platform orders since 2018."

He analyzed, "The profit margin of EV aluminum foil is about 10%, and the profitability in the second quarter of this year proved this," adding, "The recent sharp rise in aluminum prices is also a positive factor for further increases in average selling prices."

Researcher Choi stated, "Based on the best aluminum foil product competitiveness in Korea, battery clients' active overseas expansion and expansion requests are continuing," and predicted, "Future business expansion will be essential according to the already contracted order responses."

He explained, "Even assuming a conservative increase of at least one rolling mill annually, an average sales growth of 18% is expected by 2023," and added, "As the sales proportion of aluminum foil for electric vehicles, currently about 75%, increases, additional margin rate improvements are also expected."

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