[Special Stock] NineTech Supplies Tesla Cylindrical Battery Manufacturing Equipment... Revalued with Full-Scale Electric Vehicle Sales

[Asia Economy Reporter Park Hyungsoo] NineTech's stock price is soaring. Securities firms' analysis that sales of medium-to-large secondary battery equipment will increase significantly seems to be influencing the stock price.

At 9:16 a.m. on the 17th, NineTech was trading at 2,970 KRW, up 13.14% from the previous day.

Researcher Han Kyungrae of Daishin Securities explained, "Since last year, sales of medium-to-large lamination and stacking equipment for electric vehicles have started in earnest," adding, "We are supplying as the main equipment vendor to LG Chem's Poland Plant 1, Nanjing, and domestic production lines."

He continued, "At the Nanjing plant, we are also supplying Tesla cylindrical battery manufacturing equipment," and added, "Since last year, orders for medium-to-large secondary battery equipment are estimated to be about 90 billion KRW."

He emphasized, "LG Chem's secondary battery production capacity is expected to aggressively expand from 70GWh last year to 150GWh in 2022," and "Expansion is planned for Poland Plant 2, Nanjing in China, and the U.S. plant."

The researcher analyzed, "There is a high possibility of securing most of the equipment orders for the expanding lines," and "Considering LG Chem's expansion scale next year, secondary battery sales are expected to be 78.4 billion KRW, an increase of 74.5% compared to this year."

Additionally, he said, "Affiliate Ivyzerknox has secured SK Innovation as a customer following LG Chem and is expanding the supply of secondary battery vision inspection equipment," estimating that "this year's sales and net profit will increase by 184.8% and 572.9%, respectively, compared to the previous year."

Next year, NineTech is expected to record sales of 121.4 billion KRW and operating profit of 15.4 billion KRW, increases of 63.3% and 227.5%, respectively, compared to this year. The operating profit margin is expected to rise by 6.4 percentage points to 12.7% compared to the previous year. Based on next year's performance, the price-earnings ratio (PER) is 6.6 times. The researcher judged that a definite stock price revaluation is necessary as the investment direction of customers is set according to the growth of the electric vehicle market.