[Click eStock] "Shinsung ENG, Q4 Earnings Turnaround Expected... Stock Price Set to Rise"

[Asia Economy Reporter Park Ji-hwan] Kiwoom Securities announced on the 10th that Shinseong ENG is expected to see a stock price increase based on a turnaround in its fourth-quarter performance.

Shinseong ENG operates in the clean environment business (CE: Clean Environment), which installs cleanroom facilities in semiconductor, display, secondary battery, and PCB factories, and the renewable energy business (RE: Renewable Energy), which manufactures and sells solar modules.

The cleanroom (CE) targets the semiconductor, secondary battery, and PCB markets. Major clients include Samsung Electronics, SK Hynix, Samsung Display, LG Display, and LG Innotek. In the secondary battery sector, key customers are battery cell, separator, and copper foil companies. Infrastructure investment expansion by major clients is expected to benefit the company in 2022. In the solar energy (RE) sector, Shinseong ENG focused on solar modules and EPC business by halting production at its solar cell factory in the fourth quarter of 2020.

Park Yoo-ak, a researcher at Kiwoom Securities, said, "Shinseong ENG's total expected sales and operating profit for 2022 are 480 billion KRW and 35 billion KRW, respectively, indicating a performance turnaround. If solar module prices continue to rise, additional growth momentum in performance will occur."

Shinseong ENG's stock price has been declining since the end of last year due to poor performance in the solar module business. Researcher Park stated, "Starting from the fourth quarter of this year, the profitability of solar modules began to improve significantly, and cleanroom investments by semiconductor, display, and secondary battery customers are also expanding greatly. We expect a stock price reversal based on a quarterly performance turnaround."

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