[Click eStock] "J.O, Growth Expected Centered on CNT Starting This Year"

Yuanta Securities analyzed on the 26th that growth centered on CNT is expected for JEO starting this year. They presented a 'Buy' investment opinion and a target price of 42,000 KRW.

Anna Lee, a researcher at Yuanta Securities, stated, "JEO is a global monopoly company of CNT powder with a diameter of 4~6nm," and added, "It is expected that mass production of CNT powder below 2.5nm, which is monopolized by Russia's OCSIAL, will also begin within 2024."

She explained, "Growth in the CNT business division is expected to slow down in 2024 due to weak demand from domestic and European customers," but also noted, "Demand from Chinese customers will begin to expand in earnest. Estimating the volume for Chinese customers in Q4 based on customer sales proportions, it is expected that the volume required by Chinese customers in 2024 will be fulfilled."

Yuanta Securities forecasted that JEO's volume for China will increase from the second half of the year. She said, "Supply to Chinese customers is expected to expand in the second half of 2024," and added, "In Q4 2024, mass production of SWCNT for not only Chinese customers but also Japanese customers is expected to begin." She further added, "In 2025, mass production for new domestic customers will start."

The researcher explained that attention should be paid to JEO as LFP (Lithium Iron Phosphate) batteries are expected to become mainstream in the future. She said, "With the emergence of LMFP-NCM mixed batteries in 2024, LFP is expected to account for more than 47% globally by 2026," and emphasized, "Attention should be paid to LFP-related stocks, and the company is the only one in Korea with LFP customers."

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