[Click eStock] "Seojin System Expected to Improve Performance Next Year with Increased ESS Equipment Shipments"

by Ryu Hyunseok

Published 19 Sep.2025 08:18(KST)

On September 19, iM Securities analyzed that Seojin System is expected to see improved performance next year due to an increase in energy storage system (ESS) shipments. The firm initiated coverage with a "Buy" rating and set a new target price of 30,000 won.

[Click eStock] "Seojin System Expected to Improve Performance Next Year with Increased ESS Equipment Shipments"

iM Securities projected that Seojin System's sales and operating profit this year will reach 1.0922 trillion won and 67.8 billion won, respectively, representing a decrease of 9.4% and 37.6% compared to the same period last year. Researcher Shin Heechul stated, "Amid the mutual tariff issues with the United States in the first half of the year, the performance of ESS equipment, which accounts for the largest portion of the company's sales, will remain sluggish through the third quarter," adding, "Seojin System's performance in 2025 is expected to show negative growth compared to the previous year."

However, the company forecasted sales of 1.6478 trillion won in 2026 and 2.229 trillion won in 2027. He explained, "This is due to an increase in ESS equipment shipments as additional customers are secured, mainly among large domestic cell manufacturers, and a rise in semiconductor equipment order volumes following the operation of the Vietnam production line."

Although there are risks associated with the United States raising tariffs on batteries from China, iM Securities assessed that the effect of diversifying its customer base, centered on domestic cell manufacturers, will be greater for Seojin System. He said, "Starting in 2026, Seojin System will move away from a single-customer structure with Fluence Energy and expand its sales base by covering ESS finished product hardware for Samsung SDI and SK On. The addition of the PFE requirement within Section 48E ITC will provide a relative advantage for domestic cell manufacturers with in-house battery production capabilities."

He further emphasized, "Considering the expansion of ESS cell production capacity by domestic cell manufacturers after this year and the resulting increase in shipments, Seojin System's ESS equipment division is expected to overcome the slowdown in sales to its existing customer, Fluence Energy, and achieve external growth in both 2026 and 2027."