[Click eStock] Korea Zinc, Strong Performance and Secondary Battery Business Expansion This Year... Target Price Raised to 630,000 Won

[Asia Economy Reporter Hwang Yoon-joo] Kiwoom Securities maintained its investment opinion of 'Outperform' on Korea Zinc on the 8th, expecting strong performance again this year following last year, and raised the target stock price to 630,000 KRW, citing the expansion of the secondary battery materials business as positive for mid- to long-term growth potential.

Researcher Lee Jong-hyung of Kiwoom Securities stated, "In 2022, stable performance growth is expected to continue with sales of 12 trillion KRW and operating profit of 1.14 trillion KRW, driven by strong zinc prices and the upgrade/expansion effects of Australia's SMC (Sun Metal Company)."

Lee explained, "The zinc recovery rate improvement from the leaching process rationalization completed at the end of last year at Australia's SMC is expected to be fully realized starting from the second quarter of this year."

However, he pointed out, "Besides basic variables such as metal prices and exchange rates, the annual zinc concentrate smelting fee to be settled in April and the electricity rate hikes starting in the second quarter could become variables affecting profitability this year."

He also evaluated the expansion of the secondary battery materials business as positive in the mid to long term. He added, "In October this year, a secondary battery electrolytic copper foil facility with an annual capacity of 17,000 tons will begin operation, marking the full-scale start of secondary battery materials sales."

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