[Asia Economy Reporter Hyungsoo Park] ResearchAlum forecasted on the 18th that DIENT will benefit from LG Chem's secondary battery capacity expansion. The target price was set at 16,700 KRW.
Choi Seonghwan, Chief Researcher at ResearchAlum, explained, "DIENT is the only domestic supplier of cathode laser notching equipment necessary for secondary battery production, and attention is requested."
He continued, "The cathode laser notching equipment produced by DIENT requires a higher density notching technology than the anode," adding, "Among domestic companies producing notching equipment, DIENT is the only one capable of supplying cathode laser notching equipment."
Furthermore, he emphasized, "The technical entry barrier is high, making it difficult for competitors to enter," and "In October last year, DIENT signed an equipment supply contract worth 9.3 billion KRW with LG Chem."
Researcher Choi analyzed, "Supply contracts will steadily increase in line with the rapidly growing demand for secondary batteries," and "LG Chem's production capacity is 28 trillion KRW, which is insufficient compared to the order backlog of 160 trillion KRW, leading to aggressive capacity expansion."
He also stated, "They secured additional growth momentum through active entry into new businesses such as smart farms and 3D printing."
It is estimated that DIENT will achieve sales of 154.1 billion KRW and an operating profit of 12.9 billion KRW this year. Sales are expected to increase by 302.3% compared to last year, with operating profit turning positive.
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