[Click e-Stock] "Sungil Hi-Tech Expected to See Sharp Revenue Growth Starting in 2024"

On March 10, Korea Investment & Securities analyzed that as demand for electric vehicles increases, the recycling market is also expanding, and that Sungil Hi-Tech’s performance is expected to see significant growth starting in 2024.

Chulhee Cho, a researcher at Korea Investment & Securities, stated, “With the operation of the new plant beginning in 2024, revenue will increase rapidly.”

Cho explained, “Currently, the company is constructing a third post-processing plant with a production capacity three times that of the first and second post-processing plants combined. Therefore, since there will be no major changes in production capacity in 2023, the company’s performance this year is expected to be similar to that of 2022 (revenue of KRW 269.9 billion and operating profit of KRW 48.1 billion).” He also predicted that the strong revenue growth trend would continue even after 2025, when the third plant becomes operational.

The basis for this revenue growth is the expansion of the recycling market. According to SNE, the secondary battery recycling market is expected to grow from $400 million in 2022 to $5.6 billion in 2030. This is because, as secondary battery production increases, the amount of waste batteries (defective products generated during production), which serve as raw materials for recycling, will also rise, and from 2025, the number of used batteries will increase as well.

Cho also assessed, “Major countries, including Korea, the United States (IRA), and Europe (CRM), are encouraging local production of raw materials, and the fact that raw materials produced through recycling are recognized as locally produced is also a positive factor.”

Meanwhile, Sungil Hi-Tech is the only recycling company in Korea that performs both pre-processing and post-processing simultaneously. Globally, only five companies (Umicore and three Chinese firms) have internalized both pre-processing and post-processing. Sungil Hi-Tech operates a total of eight pre-processing plants (in Korea, China, Hungary, Malaysia, India, etc.) and two post-processing plants (in Korea). The company aims to secure 30 pre-processing and 5 post-processing plants worldwide by 2030.

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