[Click e-Stock] "Nano, Now a Beneficiary of Data Center Investments"

원본보기 아이콘

On November 17, Kiwoom Securities analyzed that Nano is emerging as a direct beneficiary of increased investments in data centers.

Oh Hyunjin, a researcher at Kiwoom Securities, stated, "We expect structural growth in the SCR catalyst segment in which the company operates," adding, "The enhancement of corporate value is underway due to the expansion of new plants and the successful acquisition of global clients."

Recently, demand for catalysts has been rising due to the expansion of the ship engine market and the strengthening of environmental regulations. At the same time, investments in emergency generators for global data centers are also increasing, leading to a surge in demand for high-density catalysts. Nano is rapidly expanding its market presence based on its global-level technological capabilities as well as its competitiveness in price and delivery times.

The third-quarter results also reached record highs. Nano's third-quarter revenue was 34.5 billion KRW, up 33% from the same period last year, and operating profit soared by 962% to 5.5 billion KRW. In particular, the standalone results of the headquarters, where the SCR denitrification catalyst business accounts for a large portion, showed revenue of 29.9 billion KRW, up 83% year-on-year, and operating profit of 6.2 billion KRW, a 382% increase, setting a new all-time high. This is interpreted as the result of the expansion of downstream industries such as combined cycle power generation and ship engines being fully reflected in the results.

Sales of high-value-added products for ship engines in Europe also grew significantly, with cumulative third-quarter sales reaching 12.6 billion KRW, a 179% increase from the same period last year. The Sangju headquarters plant posted monthly sales of 11.4 billion KRW for the first time since its founding, surpassing the 10 billion KRW mark.

The full-year outlook for this year is also positive. Nano's expected revenue for this year is 90.9 billion KRW, a 2.6% increase year-on-year, and operating profit is forecast to reach 7.3 billion KRW, up 339%. These are conservative estimates that take into account seasonal factors, and growth is expected to continue if new orders ramp up after the end of the year.

Nano's key momentum will accelerate in 2026. The company plans to complete a new plant dedicated to high-density SCR catalysts in November, securing annual production capacity of more than 70 billion KRW. The facility's trial operation has already been completed. High-density catalysts, mainly used in data center emergency generators, are high-value-added products with unit prices more than 2.5 times higher than existing products.

Researcher Oh explained, "A limited number of players in the global market, a sharp increase in product demand, and stable production capacity will enable the company to secure global clients." The company is also promoting the supply of denitrification catalysts for North American AI data centers, and is expected to benefit from increased investments by global generator manufacturers such as Caterpillar and Cummins.

With the effects of the new plant reflected, 2026 results are projected to show revenue of 124.3 billion KRW, up 37% from this year, and operating profit of 13 billion KRW, a 79% increase.

Researcher Oh added, "The company's recently strengthened profit base, cost reductions from normalized operations at the China subsidiary, and the potential for global client acquisition and large-scale supply contracts, along with higher utilization rates at the new plant, will provide additional growth potential." He also analyzed, "Despite the recent sharp rise in the share price, the price-to-earnings ratio (PER) for 2026 is only about 7.4 times, indicating that the stock remains undervalued."

© The Asia Business Daily(www.asiae.co.kr). All rights reserved.