[Click e-Stock] "SK IE Technology Faces Inevitable Negative Sales Growth This Year... Target Price Down 21%"

On March 25, NH Investment & Securities revised its target price for SK IE Technology (SKIET) down from 29,000 won to 23,000 won, citing the inevitability of negative sales growth this year. The investment opinion remains 'Buy'.

Minwoo Joo, a researcher at NH Investment & Securities, stated, "We lowered the target price by 21% compared to the previous estimate because the decline in U.S. sales to captive (intra-group) customers has been greater than expected, and the acquisition of new customers has been delayed. As a result, we revised down our separator sales volume forecasts for 2026 and 2027 by 11% and 6%, respectively, compared to previous estimates." He added, "Due to the nature of the separator business, which has a heavy fixed cost burden, the downward revision in profits was even greater."

Due to the slowdown in sales to captive customers this year, separator sales are forecast to reach 340 million square meters, a 10% decrease year-on-year. However, meaningful sales recovery is expected next year as new customers are secured by the end of this year. Joo said, "In 2027, sales volume is expected to improve significantly, rising 58% year-on-year to 530 million square meters through the acquisition of new customers (Samsung SDI Europe and AESC U.S.). We expect to secure demand of about 150 million square meters from these two clients, and response to new customers will begin as early as the end of this year at the Poland production line (ph2)."

NH Investment & Securities estimates that SKIET will post first-quarter sales of 4.21 billion won, down 28% from a year earlier, and an operating loss of 7.36 billion won. Both are expected to fall short of the consensus average forecast of 4.99 billion won in sales and a 5.59 billion won operating loss. Joo explained, "Separator sales volume did not improve compared to the previous quarter, mainly because U.S.-bound sales declined more sharply than expected following the liquidation of the captive customer's joint venture, and the acquisition of new customers has been delayed." He added, "The utilization rate is expected to remain in the 30% range, similar to last quarter, and losses due to fixed cost burden will continue."

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