Cowintech, Recovering 'Performance' with Expanded Investment in Secondary Batteries

[Asia Economy Reporter Hyunseok Yoo] Kowintech is recovering its performance through expanded investment in secondary batteries. In the second half of the year, performance growth is expected as the acquired Top Material's results are reflected along with the expansion of related investments.

According to the industry on the 15th, Kowintech's consolidated second-quarter sales and operating profit were 28.6 billion KRW and 700 million KRW, respectively. This represents increases of 291.3% and 349.3% compared to the same period last year.

Jongseon Park, a researcher at Eugene Investment & Securities, said, "The positive second-quarter performance is due to the expansion of investment in the secondary battery front market, with the automation equipment sector increasing by 143.3% compared to the same period last year." He added, "In addition, the chemical and petroleum sectors also contributed to performance growth with an 861.1% increase compared to the same period last year." He further noted, "The system engineering and secondary battery material-related sales of Top Material, acquired last March, were reflected, achieving significant performance growth."

Performance improvement is expected to continue in the third quarter as well. Eugene Investment & Securities forecasted that Kowintech's third-quarter sales and operating profit will reach 36.7 billion KRW and 4.8 billion KRW, respectively. Sales represent a 524.% increase compared to the same period last year, and operating profit is expected to turn positive.

Researcher Jongseon Park emphasized, "Despite the performance growth trend of equipment companies due to global electric vehicle-oriented secondary battery investment expansion, there has been a 13.8% stock price decline over the past six months." He stressed, "Kowintech is expected to see a stock price uptrend along with future performance growth as sales from its subsidiary Top Material's secondary battery system engineering are reflected in addition to secondary battery automation equipment."