[Click eStock] "Shinheung SEC, Continued Growth in Secondary Batteries"

[Asia Economy Reporter Hyungsoo Park] NH Investment & Securities analyzed on the 28th that the current stock price of Shinheung SEC is undervalued compared to this year's expected performance.

Researcher Sehoon Son of NH Investment & Securities stated, "We estimate sales of 329.5 billion KRW and operating profit of 28.6 billion KRW this year," adding, "Sales and operating profit are expected to increase by 37.6% and 41.9% respectively compared to the previous year."

He continued, "We expect the production volume of medium-to-large batteries for electric vehicles by our client to increase by 80.6% compared to last year," and added, "In the first half of the year, the 4th line of the Hungary corporation will be newly operated, and in the second half, the 5th line will be newly launched."

Researcher Son emphasized, "The production capacity of the Hungary corporation will increase from the current 3 million units per month to 5 million units by the end of the year," and "In the second quarter of this year, production of new EV secondary batteries will begin, continuing growth."

Additionally, he analyzed, "The price-to-earnings ratio (PER) of secondary battery material stocks was formed at over 30 times as of 2020," and "Secondary battery component stocks can be assigned a slightly lower PER of over 20 times." The stock price of Shinheung SEC is only about 15.5 times PER based on this year's performance.