[Click eStock] "Cosmo Chemical, Full-Scale Expansion of Used Battery Business... Stock Price Undervalued"

[Asia Economy Reporter Ji Yeon-jin] Cape Investment & Securities announced on the 7th that Cosmo Chemical is actively expanding its used battery business, but its stock price is relatively undervalued.

Heo Seon-jae, a researcher at Cape Investment & Securities, stated, "Cosmo Chemical recently announced the expansion of its used battery recycling business, completing a big picture for mid- to long-term growth. The company secures stable performance through sales of its main business, titanium dioxide, and is accumulating significant profits through the used battery recycling business."

Researcher Heo added, "In particular, it is necessary to pay attention to the business synergy resulting from the vertical integration of secondary battery cathode active materials at the Cosmo Group level. The expansion of the cathode active material business of Cosmo Advanced Materials, which is expected to grow at an average annual rate of over 50%, directly leads to the improvement of the company's performance."

The company's titanium dioxide division is expected to achieve substantial external growth through an OEM supply contract with Germany's Kronos for special anatase products. Last year's sales amounted to 136.4 billion KRW with an operating profit margin of 4%, but it is estimated to significantly improve to 163.2 billion KRW in sales and a 10% operating profit margin next year.

Researcher Heo said, "Regarding the used battery business, production facilities are expected to be completed in 2023, with maximum operation anticipated in 2024. Since there is a definite demand source in the subsidiary Cosmo Advanced Materials, it is estimated that at least 200 billion KRW in new annual sales will be added."

Next year's separate financial results are projected to show sales of 333.8 billion KRW, a 44.8% increase from this year, and operating profit of 22.4 billion KRW, a 62.2% increase.

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