[Asia Economy Reporter Hyungsoo Park] Taifax has reached a 52-week high. The stock price appears to have been influenced by the increase in sales of Unilab for food packaging due to the impact of the novel coronavirus infection (COVID-19), along with the expectation that sales of secondary battery tapes for electric vehicles will begin in earnest.
As of 10:05 a.m. on the 11th, Taifax is trading at 34,650 KRW, up 15.89% from the previous day.
Taifax, a tape material subsidiary of Hansol Chemical, focuses on the electronic materials business used in secondary batteries and displays. It supplies secondary battery tapes to the three major domestic battery companies. It is the main vendor supplying cylindrical batteries for Tesla through LG Chem.
Sales of secondary battery tapes have increased by more than 5 billion KRW annually since 15 billion KRW in 2017. Researcher Han Kyung-rae of Daishin Securities explained, "Sales of secondary battery tapes for electric vehicles will grow significantly starting this year with supplies to Tesla," adding, "We expect sales of secondary battery tapes to reach the mid-30 billion KRW level this year."
Unilab sales are estimated at 34 billion KRW, about 10% higher than the previous year, benefiting from COVID-19. Researcher Han said, "Based on this year's expected performance, the PER is only around 10 to 11 times," and analyzed, "Considering the expansion of the OCA supply lineup through SDC next year and the full-scale increase in sales of secondary battery tapes for electric vehicles, it has high valuation appeal."
The operating rate of Taifax's Unilab business unit factory exceeded 95% in the first quarter. Currently, even running the production line at full capacity cannot meet the overflowing orders. Demand has increased as food delivery orders have expanded.
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