[Click eStock] Iljin Materials to Announce Investment in Europe and the US... Target Price Up

Iljin Materials' Elecfoil. It is a key material used in secondary batteries for electric vehicles.

[Asia Economy Reporter Hwang Yoon-joo] Eugene Investment & Securities maintained a 'Buy' rating on Iljin Materials on the 2nd, stating that there is a possibility of upward revision in earnings if the expansion of factories in Europe and the United States is confirmed, and raised the target price to 120,000 KRW.

Researcher Han Byung-hwa of Eugene Investment & Securities said, "The establishment of new production facilities in Europe and the United States is also scheduled to be announced within this year," adding, "Since the expansion is requested by customers, the company's mid- to long-term growth can be guaranteed."

Iljin Materials has started expanding its battery copper foil factory in Malaysia from the existing 40,000 tons to 90,000 tons. The expansion is expected to be completed over the next two years.

Researcher Han analyzed, "Sales and operating profit in 2022 are estimated to increase by 35% and 38% year-on-year to 932.3 billion KRW and 98.1 billion KRW, respectively," and "The additional 20,000-ton production facility in Malaysia, completed in the fourth quarter, is expected to start full-scale operation from the second quarter of this year, leading to earnings growth."

He continued, "Although the demand for battery copper foil from customers temporarily decreased in the fourth quarter due to the shortage of automotive semiconductors, it is judged to have entered a recovery trend," and evaluated, "The valuation, which was excessively high due to the sharp drop in stock price, has decreased."