[Click eStock] "Wonjun, Secondary Battery Material Expansion and Joint Growth"

[Asia Economy Reporter Jang Hyowon] NH Investment & Securities analyzed on the 14th that Wonjun is expected to see increased equipment demand driven by the secondary battery material expansion cycle.

Kang Kyunggeun, a researcher at NH Investment & Securities, stated in a report on the day, “Wonjun is a manufacturer of heat treatment sintering furnace equipment for secondary battery materials (cathode materials, anode materials),” and explained, “They have achieved domestic design localization of RHK (Roller Hearth Kiln) and PK (Pusher Kiln) facilities for secondary battery material production and hold delivery references to major material companies such as POSCO Chemical, EcoPro BM, and Daewoo Electronic Materials.”

Researcher Kang forecasted, “Driven by the secondary battery material expansion cycle, Wonjun’s equipment demand will continue to grow strongly over the next 2 to 3 years,” and anticipated, “The business will perform well with the expansion of POSCO Chemical’s customer base in the cathode material sector and continued large-scale orders.” POSCO Chemical’s cathode material expansion plan is expected to increase from 45,000 tons this year to 155,000 tons in 2023, 195,000 tons in 2024, and 465,000 tons in 2025.

Currently, Wonjun’s stock price has fallen about 60% from its peak since the free capital increase decision in July. The main reasons for the stock price decline are overhang and order gaps. However, the VC-held overhang compared to the time of listing has now been largely resolved.

He said, “As of the end of the third quarter, the order backlog is about 125.7 billion KRW, and expected future orders include multiple projects such as cathode material sintering furnaces for the POSCO Chemical-GM JV (Quebec) and silicon anode material sintering furnaces for SK Materials Potin,” adding, “Although it is difficult to predict the timing of orders, considering the front-end market situation, a favorable order flow is expected next year.”

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