[Click eStock] "Hansol Chemical, a Stock Investing Simultaneously in Semiconductors and Batteries"

[Asia Economy Reporter Ji Yeon-jin] Samsung Securities announced on the 9th that it maintains a buy rating and a target price of 380,000 KRW for Hansol Chemical, expecting its stable portfolio in semiconductors, batteries, and displays to attract attention.

Lee Jong-wook, a researcher at Samsung Securities, said, "The competitiveness in semiconductor materials and the growth potential in battery materials are the key characteristics of Hansol Chemical's business," adding, "Next year will be a period when the semiconductor memory market rebounds, electric vehicle growth continues, and QD-OLED TV launches occur, creating favorable market conditions for Hansol Chemical."

Hansol Chemical has historically traded at a price-to-earnings ratio (PER) between 8 and 20 times. In particular, recently, with proven competitiveness in semiconductors and high entry barriers for hydrogen peroxide, it has not traded below 15 times PER. According to the researcher, the company's PER of 17.9 times next year only reflects the semiconductor segment.

He stated, "Factors that have limited the reflection of battery material value?concerns about semiconductor peak-out (decline after a peak) and the low profit ratio from batteries?are expected to ease next year. Therefore, from next year through 2023, the entry into the silicon additive market for anode materials and the expansion of battery profit ratio make the company's stock price level appropriate for re-rating."

Next year's sales and operating profit are forecasted to grow by 18% and 22%, reaching 899.8 billion KRW and 249.5 billion KRW, respectively. The foundation of this growth is batteries, with related operating profit expected to increase from 17% of total operating profit this year to 22% next year. In 2023, the company is expected to enter the silicon anode additive market, expanding the profit ratio to 30%, or 80 billion KRW.

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