[Click eStock] "NCS, Expected to Grow 4 Times Compared to Current Sales by 2025"

[Asia Economy Reporter Ji-hwan Park] Yuanta Securities forecasted on the 3rd that Nensis will experience growth reaching four times its current sales by 2025.

Nensis is a specialized company in vision inspection equipment for secondary batteries. It can provide vision inspection equipment covering the entire manufacturing process from electrode processing to module and pack processing. Due to successive electric vehicle fire issues, the importance of defect inspection continues to rise, and the number of steps applying vision inspection is also increasing.

Researcher Kwangjin Kim of Yuanta Securities stated, "We are trading with LGES (exclusive for pouch and cylindrical electrode processing), Samsung SDI (exclusive for prismatic and cylindrical assembly, activation, module and pack processing), and overseas electric vehicle companies (estimated exclusive for all processes)," and evaluated that "Nensis holds a monopolistic position within its clients." He added, "Vision inspection equipment requires customization for each manufacturing line, making substitution by other companies difficult," and "It is expected that the monopolistic position within client companies can be maintained."

Considering the expansion plans of client companies, the potential order volume over the four years from next year to 2025 is expected to reach approximately 600 billion KRW. It is estimated that about 49% of this will be orders from overseas electric vehicle companies. Researcher Kim said, "Since we participated as the sole vendor in building the pilot line, it is judged that sole orders are likely when establishing mass production lines."

Considering that the order backlog is expected to be around 20 to 25 billion KRW by the end of this year, the annual average sales capacity is expected to rise to about 160 billion KRW by 2025. To prepare for the rapidly increasing new orders, facility investment decisions were also completed last month. Upon completion of the expansion, production capacity is expected to increase by 233%, from 60 billion KRW to about 200 billion KRW in terms of sales.

Researcher Kim emphasized, "Next year's expected performance is sales of 70 billion KRW and operating profit of 14 billion KRW, which could represent increases of 66.7% and 86.7% compared to the previous year." The current secondary battery equipment sector has formed a high price-to-earnings ratio (P/E) multiple of about 20 to 30 times, reflecting mid- to long-term growth expectations through 2025.

He stressed, "The unique position within client companies (operating profit margin (OPM) of about 20%) and securing overseas clients are clear premium factors that can differentiate from peer companies, and the appropriate market capitalization was estimated at 360 billion KRW."

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