[Featured Stock] Daebo Magnetic Benefits from 2nd Battery De-Japanization... New Cathode Material Business Also Expected

[Asia Economy Reporter Hyungsoo Park] Daebo Magnetic is showing strength. Analysis that it will benefit from the expansion of secondary battery facility investment appears to have influenced the stock price.

As of 10:47 AM on the 22nd, Daebo Magnetic is trading at 29,450 KRW, up 4.43% compared to the previous trading day.

Hi Investment & Securities forecasted on the 22nd that Daebo Magnetic will benefit from the expansion of secondary battery facility investment.

Daebo Magnetic, established in 1994, is a specialized company in magnets and magnet-applied devices. Based on magnetic separation technology that removes iron using magnetic force, it manufactures iron removal equipment that eliminates iron or non-ferrous metals contained in raw materials. The iron removal equipment is supplied to secondary battery material companies and cell manufacturers. Its main products include Electro Magnetic Filters and Magnetic Separators.

Researcher Sangheon Lee of Hi Investment & Securities explained, "Secondary batteries are expected to grow rapidly as demand increases for electric vehicles and energy storage systems," adding, "Manufacturers are increasing their facility investments."

He added, "Daebo Magnetic established a growth foundation by domesticating the Electro Magnetic Filter, which was monopolized by Japanese companies," and "It holds a solid market share in the iron removal equipment market."

He also emphasized, "With the advancement of secondary batteries, demand for lithium hydroxide and other materials is expected to expand," and "They are preparing to enter the new material processing business."

It is expected that sales will increase by supplying lithium hydroxide and other materials obtained through processing to cathode material companies. The researcher predicted, "The material processing business for lithium hydroxide and others has high entry barriers, so if sales increase in the future, it will contribute to profitability improvement," and "The emergence of new sales from the processing business will act as a momentum for Daebo Magnetic's stock price rise."