[Click eStock] "Daejoo Electronic Materials Leads Anode Material Market... Target Price 110,000 Won"

Shinhan Investment Corp. initiated coverage on Daejoo Electronic Materials, a silicon anode material company for secondary batteries, on the 2nd, stating that "based on multiple mass production experiences with technically challenging materials, it has secured a superior market position compared to competitors," with a buy rating and a target price of 110,000 KRW. The previous trading day's closing price was 83,100 KRW.

On the same day, Min-ki Choi, a researcher at Shinhan Investment Corp., said, "It is the only company that can guarantee quality and quantity to customers during the period of rapidly increasing demand for silicon anode materials."

Next year, Daejoo Electronic Materials is expected to see an increase in silicon anode material customers and a full-scale expansion of installed vehicle models. Researcher Choi said, "Despite the slowdown in electric vehicle demand, its differentiated growth within the battery value chain stands out," adding, "The production schedule for cylindrical customers and 4680 cells is becoming visible. This will act as a short-term stock price boost."

In particular, it is diversifying its portfolio centered on the premium segment and actively pursuing external growth. Although the launch of some vehicle models has been delayed until next year, it is securing OEMs (Original Equipment Manufacturers) that can expect significant sales volume as final customers. Researcher Choi analyzed, "This year's sales are expected to be 215.4 billion KRW, and operating profit 28 billion KRW, up 16% and 351% respectively from last year," adding, "The growth was driven by the adoption of silicon anode materials in mid-to-low-priced models (EV3, Casper EV) and increased automotive sales of phosphors. Next year, with the expansion of new silicon anode material vehicle models, sales are projected at 272.7 billion KRW and operating profit at 42.9 billion KRW."

Researcher Choi added, "Although there is some valuation pressure, the high growth potential of silicon anode materials and market position based on mass production experience must be considered," and "While the introduction of silicon anode material facilities was flexibly adjusted considering the slowdown in the upstream market, it holds the largest production capacity except for Chinese companies."

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