[Click eStock] "Shinheung SEC, Sufficient Potential for Stock Price Increase"… Target Price 100,000 Won

[Asia Economy Reporter Ji Yeon-jin] Samsung Securities announced on the 19th that it maintains a buy rating on Sinhung SEC, judging that there is sufficient potential for stock price increase due to improved earnings, and raised the target price to 100,000 won.

Sinhung SEC recorded consolidated sales of 92.5 billion won and operating profit of 13.3 billion won in the second quarter of this year, significantly exceeding market expectations. It is analyzed that strong sales of batteries for power tools and increased sales of electric vehicle batteries led to improved operating rates of the company's small CIC and medium-to-large cap assemblies. Sales of pack module products supplied to domestic small electric vehicle battery manufacturers also contributed significantly to growth.

Both quarterly operating profit and margin rate reached record highs, and the second quarter operating profit reached half of last year's annual operating profit (26.6 billion won).

Samsung Securities revised upward its earnings forecast for this year to sales of 445.1 billion won and operating profit of 51.5 billion won. Researcher Jang Jeong-hoon of Samsung Securities said, "In the second half of the year, with additional expansion of small CID and medium-to-large expansion in Hungary underway, front-end demand appears steady, making it reasonable to assume full operation, and the price mix improvement effect due to expanded sales of 2170 batteries is also expected," he said.