[Click eStock] "Samyangsa, the Only Domestic Producer of Core Materials for Hydrogen Cars... Expected to Overcome Undervaluation"

[Asia Economy Reporter Hyunseok Yoo] Hanyang Securities analyzed on the 18th that Samyangsa is expected to break away from undervaluation as a company producing core materials for hydrogen vehicles. No investment opinion or target price was presented.

Samyangsa is a company engaged in food and chemical businesses. Among these, the chemical business continues to grow. Kim Yongho, a researcher at Hanyang Securities, said, "Chemical sales have been on an upward trend since the fourth quarter of last year," adding, "The high growth is estimated to be mainly due to the price increase of engineering plastics (EP), which has the highest sales proportion."

In particular, Kim emphasized that Samyangsa is the only domestic producer of 'ion exchange resin,' a core material for hydrogen vehicles. He explained, "Ion exchange resin is a plastic combined with an ion exchanger, used to remove ions and fine impurities in all liquids including water," emphasizing, "Samyangsa has built a diversified product portfolio." He added, "It is the only domestic manufacturer of ion exchange resin and possesses the largest production capacity in Asia."

Samyangsa completed the development of ion exchange resin used in hydrogen vehicle ion exchange filters in July last year. He said, "Ion exchange filters are used to remove ions in coolant and piping and need to be replaced approximately every 60,000 km," adding, "Samyangsa plans to supply ion exchange resin for hydrogen vehicles to domestic and overseas automakers."

Hanyang Securities forecasted that Samyangsa's sales and operating profit this year will increase by 17.1% and 183% year-on-year to 2.4 trillion KRW and 132 billion KRW, respectively. He explained, "Considering the solid performance of the chemical and food sectors, high asset value, and the expected benefits from the expansion of eco-friendly vehicles such as EP and ion exchange resin, the stock price has been undervalued."