[Asia Economy Reporter Hyungsoo Park] TCC Steel is showing strong performance. Yuanta Securities analyzed TCC Steel as a hidden undervalued secondary battery stock, which appears to have influenced its stock price. The decision to make large-scale expansion investments in response to the increasing demand for nickel-plated steel sheets is also raising expectations for improved earnings.
As of 9:20 AM on the 4th, TCC Steel is trading at 10,900 KRW, up 4.81% from the previous day.
TCC Steel is a surface-treated steel sheet specialized manufacturer producing electric tin-plated steel sheets, electrolytic chromic acid treated steel sheets, electric copper-plated steel sheets, electric nickel-plated steel sheets, and laminate steel sheets.
Jinhyung Park, a researcher at Yuanta Securities, explained, "TCC Steel holds various opportunity factors due to the rapid growth of the secondary battery market" and "It produces cylindrical battery packaging materials." He added, "It supplies domestic cell manufacturers through processing companies," emphasizing, "Although the sales scale was around 90 to 100 billion KRW per quarter, sales of electric nickel-plated steel sheets have surged since the second quarter of last year."
TCC Steel is estimated to increase its sales and operating profit by 18.8% and 57.5%, respectively, compared to the previous year. It is expected to achieve sales of 634.5 billion KRW and operating profit of 37.1 billion KRW.
He continued, "Earnings will significantly improve due to the expansion of secondary battery demand driven by the growth of the electric vehicle market," adding, "Currently, the stock price is only at a price-to-earnings ratio (PER) of about 8.4 times."
The growth of the electric vehicle market has been proven through Tesla. On the 2nd (local time), Tesla announced that it delivered a total of 308,600 vehicles in the fourth quarter of last year, exceeding the market expectation of 267,000 vehicles. Tesla's stock price rose by about 13%.
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