[Click eStock] Hansol Chemical, Battery Material Sales Rapidly Increasing

[Asia Economy Reporter Lee Seon-ae] A report has emerged expecting rapid growth in the consolidated sales of battery materials business at Hansol Chemical.

On the 9th, Kim Kyung-min, a researcher at Hana Financial Investment, stated, "The rise in Hansol Chemical's stock price has been contributed by binder materials currently generating sales in the secondary battery business and silicon additive materials for anodes expected to generate future sales. Adding the tape business of the consolidated subsidiary Taepax, consolidated sales from the battery materials business are projected to exceed 200 billion KRW in 2024." He analyzed, "If that happens, the number of product categories capable of annual sales of 200 billion KRW will increase to three, including hydrogen peroxide, electronic materials (precursors, QD materials), and secondary battery materials."

He continued, "The rapid growth potential of secondary battery material sales is an investment point expected to further drive future stock price increases," emphasizing this while presenting a target stock price of 310,000 KRW. However, no investment opinion was provided.

Hansol Chemical supplies semiconductor materials (hydrogen peroxide, precursors, specialty gases), display materials (QD materials), and secondary battery materials (binder: which adheres cathode/anode active materials and conductive materials to the current collector). The consolidated subsidiary Taepax supplies tapes for secondary batteries (such as cathode protection and insulation tapes).

Recently, the stock price surpassed 300,000 KRW. This is due to strong performance in key product lines and expectations for diversification of secondary battery supply items. Additionally, SK Materials, which supplies semiconductor and display process materials, is being merged into the holding company SK Inc., positively impacting Hansol Chemical’s stock price as it reestablishes itself as the leading listed company in semiconductor process materials.

The third-quarter performance maintains sales of 196.6 billion KRW and operating profit of 56.5 billion KRW. Compared to the second quarter sales (187.3 billion KRW), items showing growth include semiconductor-grade hydrogen peroxide, QD materials, and secondary battery binders. The volume of semiconductor-grade hydrogen peroxide is increasing by more than 1,000 tons each quarter. Despite ongoing concerns in the stock market about a peak out in the memory semiconductor market, the supply volume of hydrogen peroxide to memory semiconductor clients is increasing. This is presumed to be due to increased demand for wafer cleaning hydrogen peroxide driven by miniaturization and high integration of memory semiconductors. Meanwhile, QD materials are expected to achieve annual sales exceeding 100 billion KRW in 2021, boosted by increased volumes for QD-OLED TV panels. For battery binders, a market share increase effect is anticipated aligned with the launch of the 5th generation new product in the upstream industry (applying high-nickel NCA technology with nickel content above 88%, relatively reducing the proportion of scarce metal cobalt).