[Click e-Stock] "SangsineDP: Expansion of Prismatic Batteries and Large-Scale ESS... Turnaround Opportunity"

On April 16, Samsung Securities analyzed that SangsineDP is simultaneously highlighting its growth potential, profitability recovery, and valuation appeal by leveraging changes in electric vehicle (EV) battery form factors and the structural shift in the energy storage system (ESS) market as opportunities.

Jang Jeonghoon, a researcher at Samsung Securities, stated, "Looking at market trends by EV battery form factor, the share of prismatic cells is expected to expand from 26% in 2021 to 43% in 2025," adding, "With the market structure rapidly shifting toward prismatic formats, both favorable industry conditions and opportunities for product diversification are emerging at the same time."

He also explained that significant changes are evident in the ESS market. Jang noted, "ESS LFP batteries are at the 273Ah level, which is larger than those used in EVs, and are expected to become even larger in the future," adding, "The expansion of demand for prismatic form factors is inevitable."

Furthermore, he pointed out, "The expansion of customers adopting the 46-pi (46mm diameter) standard is also an important change," stating, "Compared to conventional cylindrical types, the volume is about five times larger and the energy performance is higher, leading major electric vehicle OEMs to begin adopting them." In this process, he emphasized, "The company can generate additional revenue by adding components such as CID, insulators, and gaskets to its existing cylindrical can manufacturing."

The shift to next-generation materials is also cited as a key opportunity. He mentioned, "Battery cell manufacturers are preparing prismatic products in response to mass production of LMR, indicating the possibility of related benefits."

Diversification of the customer base based on technological competitiveness is another core point. Jang explained, "With its proprietary mold technology, the company can produce containers without welding using 'Deep Drawing' technology, which enables the production of the largest sizes in Korea."

He further assessed, "In the North American ESS market, the movement to secure supply chains independent of China is coinciding with a preference for prismatic formats, making the expansion of prismatic battery suppliers inevitable," adding, "This presents a positive opportunity for the company, which is already a major supplier of key components, to expand its customer base."

A turnaround in performance is also being confirmed. He explained, "The company experienced an operating loss in 2024 due to shrinking downstream demand, but succeeded in returning to profitability in 2025," adding, "This was achieved by reducing the manufacturing defect rate for prismatic products from 4.5% to 1.3% through process improvements, and by cutting material costs through reduced oil use in the process."

Such growth and profitability recovery are expected to lead to valuation appeal. Jang stated, "Based on 30% sales growth and mid-to-high single-digit operating margin guidance in 2026, the current stock price reflects a 2026 price-to-earnings (P/E) ratio of 16.4 times," diagnosing, "This is significantly undervalued compared to the average P/E of 54 times for the secondary battery materials and components peer group."

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