[Click eStock] Iljin Hysolus is a Growing Tanker

[Asia Economy Reporter Lee Seon-ae] On the 20th, Korea Investment & Securities announced that it has initiated coverage on Iljin Hi-Solus, the world's No.1 hydrogen tank company, with a 'Buy' rating and a target price of 82,000 KRW. The target price was discounted to the 2022 level by applying a price-to-earnings ratio (PER) of 50 times to the estimated 2025 earnings per share (EPS) (discount rate 20%).

Jinwoo Kim, a researcher at Korea Investment & Securities, said, "A PER of 50 times was considered given that electric vehicle parts companies receive PERs of 20 to 30 times, and battery material companies receive 60 to 70 times," adding, "The hydrogen economy is still in its early stages, and the hydrogen vehicle market is expected to sustain an average annual growth rate of 58% from 2025 through 2030."

The importance of demand sectors within the hydrogen economy is increasing because initial hydrogen supply is sufficient. Among the demand sectors, transportation, specifically hydrogen mobility, is gaining attention. As hydrogen mobility diversifies, demand for hydrogen tanks is also expected to expand. Due to battery weight and charging time issues, electric vehicles are expected to grow mainly in the passenger car market, while hydrogen vehicles will expand primarily in the commercial vehicle market.

The key investment points for Iljin Hi-Solus are the growing hydrogen vehicle market, the importance of hydrogen tanks within hydrogen vehicles, and Iljin Hi-Solus's technological competitiveness. Researcher Kim emphasized, "Iljin Hi-Solus is expected to maintain a high market share in the growing global hydrogen tank market by leveraging the advantages of being a pioneer," and added, "Compared to passenger cars that only supply hydrogen tank units, supplying modules as well to commercial vehicles, thereby increasing unit prices, is also positive considering market trends."