[Click eStock] "Hanatech, an All-rounder in Secondary Battery Manufacturing Equipment... Overseas Orders Expected to Increase"

The Only Domestic Company with a Complete Equipment Portfolio for Secondary Battery Manufacturing Processes

[Asia Economy Reporter Eunmo Koo] Hana Technology is expected to see a significant increase in orders from overseas clients, as it is the only company in Korea that possesses an equipment portfolio covering the entire manufacturing process of secondary batteries.

Hana Technology is the only company in Korea that holds a complete equipment portfolio for the entire process (electrode plate process, assembly process, activation process, pack process) regardless of the form of secondary batteries (cylindrical, prismatic, pouch, semi-solid). Based on this technological capability, it has secured major domestic secondary battery companies such as Samsung SDI, LG Chem, and SK Innovation as clients, and is expanding its overseas clientele to include Sony, Murata, BYD, and Volkswagen.

Junyoung Choi, a researcher at Hanwha Investment & Securities, explained in a report on the 22nd, “Overseas secondary battery companies prefer turnkey supply where the entire production line is engineered rather than receiving specific equipment separately, and Hana Technology’s know-how on the entire process is leading to turnkey orders.” Researcher Choi added, “Currently, overseas contracts are estimated at about 100 billion KRW in China and about 200 billion KRW in Europe and North America. Although overseas sales accounted for only about 5% this year, it is highly likely to increase significantly next year.”

Attention is also drawn to the high growth potential of new businesses. Hana Technology is preparing to enter the inspection equipment market targeting the recycled battery market to expand its growth drivers. Researcher Choi stated, “As the secondary battery market grows, environmental pollution issues related to used batteries become more prominent, inevitably increasing demand for recycling. Hana Technology has developed performance testers and pack charge-discharge testers for recycled batteries and plans to enter the domestic mass production equipment market next year.” Additionally, Hana Technology plans to enter the foldable display market from 2023 by developing UTG (Ultra Thin Glass) thermal cutting processing technology and equipment, separate from its main business.

Considering the potential for earnings growth, the stock price is diagnosed as significantly undervalued. Since its initial public offering (IPO), Hana Technology’s stock price has continued to decline due to overhang from existing investors. Researcher Choi analyzed, “Most of the overhang has now been resolved, and considering that it is the only company in Korea capable of designing the entire secondary battery process, the expected earnings upside next year, and its attractive new business growth strategy, the current stock price level is in a significantly undervalued range.”