[Click eStock] "SKC Enters Silicon Anode Material Business...Continued Strong Performance"

[Asia Economy Reporter Park Jihwan] Kiwoom Securities on the 2nd forecasted that SKC's entry into the high-growth silicon anode material business is expected to generate additional sales of approximately 150 billion KRW, and that the strong prices of its main products, copper foil and PG, will continue to drive performance improvements. They issued a "Buy" investment rating and set a target price of 300,000 KRW.

Researcher Lee Dongwook of Kiwoom Securities stated, "SKC has entered the high-growth silicon anode material business," adding, "The initial production capacity is 1,200 tons, and commercial operation is expected to begin as early as the second half of 2025."

The global anode material market size is projected to grow from 532,000 tons in 2020 to 3.17 million tons in 2027, at a compound annual growth rate (CAGR) of 29.0%. Researcher Lee Dongwook noted that among materials, synthetic graphite anode materials will maintain a dominant share (77.1%) until 2027, but as the share of natural graphite sharply declines, silicon-based anode materials are expected to replace it. In particular, the silicon anode material market is forecasted to grow from 6,000 tons last year to 321,000 tons in 2027, achieving a CAGR of 76.6%. The development and commercialization of silicon anode materials are expected to expand simultaneously to improve battery capacity and charging speed.

Researcher Lee Dongwook said, "In early November, we mentioned an initial silicon anode material production capacity of 1,200 tons, and considering the industry's estimated selling price for silicon anode materials, full operation is expected to generate sales of approximately 150 billion KRW." He also expects production capacity to increase more than sevenfold by 2025, and considering technology development and market expansion speed, SKC is likely to simultaneously pursue responses to high-content products.

Analysis also suggests that the strong prices of main products will continue. The domestic export price of copper foil in November was $15,802 per ton, up 19.2% compared to the same period last year, maintaining a strong trend. Despite ongoing logistics issues, the supply and demand for automotive semiconductors have somewhat eased, while copper foil remains in a tight supply-demand situation. Researcher Lee Dongwook said, "The domestic export price of PG in November was $2,782 per ton, an 86.3% increase compared to the same period last year," adding, "Supply bottlenecks persist, and the surge in glycerin prices has increased demand for USP Grade PG, so we maintain our optimistic view on the company."