[Click eStock] "Hansol Chemical, the Most Undervalued Battery Material"…Target Price Up 43%

[Asia Economy Reporter Ji Yeon-jin] KB Securities announced on the 6th that it has raised the target price for Hansol Chemical from 410,000 KRW to 480,000 KRW, a 43.9% increase, stating that as the only battery material company that has successfully registered patents for electrolyte manufacturing, a core material of all-solid-state batteries, with global automobile manufacturers, it is expected to benefit from the expansion of the all-solid-state battery market.

Dongwon Kim, a researcher at KB Securities, said, "We have revised upward the earnings estimates for 2023-2025 reflecting the growth in battery material sales due to securing a diverse product lineup of secondary battery materials." He added, "Hansol Chemical is expected to expand its product lineup starting with binders this year, silicon anodes in 2023, and solid electrolytes, a core material for all-solid-state batteries, in 2025."

Hansol Chemical's battery material sales are expected to increase tenfold from 42 billion KRW last year to 441.7 billion KRW in 2025 over five years. The sales proportion is also estimated to expand from 6.8% to 28.2% by 2025. This is due to the expansion of binder material market share (100% market share for Gen 5 battery binders), acquisition of new customers among overseas battery companies, and production of silicon anode materials in 2023 and solid electrolyte materials for all-solid-state batteries in 2025.

In particular, from 2025, the all-solid-state battery market is expected to open in earnest, starting with commercial production by Japan's Toyota. The global all-solid-state battery market size is estimated to grow 18 times over the next 10 years, from 1.6 trillion KRW in 2025 to 29.3 trillion KRW in 2035.

Operating profit in the second half of this year is expected to reach a record high of 113.9 billion KRW, a 46% increase compared to the previous year. Annual operating profit is estimated to double in three years. Researcher Kim said, "Hansol Chemical is evaluated as a company that simultaneously holds both short- and long-term earnings momentum and undervaluation appeal," adding, "It is the most undervalued company within the battery material sector, so a stock price revaluation through valuation increase is expected in the future."

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