[Click e-Stock] Hansol Chemical's Battery Material Sales Begin in Earnest

Battery Sales Alone Expected to Surpass 310 Billion Won in 3 Years

[Asia Economy Reporter Minwoo Lee] Hansol Chemical's battery material sales are experiencing rapid growth. This has led to analyses suggesting a potential revaluation of the company's future corporate value.

On the 14th, KB Securities maintained a 'Buy' rating on Hansol Chemical and raised the 12-month target price by 17% to 410,000 KRW. The previous day's closing price was 317,500 KRW. This reflects the steep growth trend in Hansol Chemical's battery material sales.

Hansol Chemical's battery material sales (binder, secondary battery tape, silicon anode material) are estimated to increase nearly fourfold from 81 billion KRW this year to 310.2 billion KRW in 2024 over three years, driven by increased orders from overseas battery companies and the US electric vehicle manufacturer Tesla. The compound annual growth rate from next year is expected to reach 57%. In particular, Hansol Chemical has secured manufacturing patents jointly filed with Hyundai Motor for sulfide-based solid electrolytes, a key material for all-solid-state batteries, anticipating business expansion from 2024 to 2025.

The current stock price is also analyzed as the most undervalued among secondary battery material companies. Based on estimated 2022 performance, Hansol Chemical's price-to-earnings ratio (PER) is 15.9 times, less than one-third of the average 60.5 times for secondary battery material companies. Dongwon Kim, a researcher at KB Securities, stated, "The battery material product lineup is expected to continuously expand from binders to silicon anode materials and solid electrolytes for all-solid-state batteries." He added, "Hansol Chemical's operating profit is estimated to approach 400 billion KRW within three years, making it a company that has secured both short- and long-term performance growth momentum."