[Click eStock] Iljin Hysolus, Investment Rating Upgraded to 'Buy' "Focus on Mid- to Long-Term Capabilities"

[Asia Economy Reporter Lee Seon-ae] Hi Investment & Securities announced on the 20th that it has upgraded its investment opinion on Iljin Hysolus from neutral (hold) to buy. The target price remains at 50,000 KRW.

Shin Yoon-chul, a researcher at Hi Investment & Securities, explained, "We still focus on the company's capability to solidify a leading position in the hydrogen mobility ecosystem in the mid to long term rather than short-term performance, maintaining a long-term approach." He added, "However, considering the recent stock price stabilization due to the resolution of the overhang issue, the possibility of inclusion in the KOSPI 200 regular revision in June, the potential acquisition of new overseas customers, and the stock price upside driven by the increasing production volume of Hyundai Motor's Nexo, we have changed our investment opinion from hold."

Sales from Iljin Hysolus's hydrogen business division still account for about 80% from supplying hydrogen fuel tanks for Hyundai Motor's Nexo passenger vehicles. Over the next two years, the increase in Nexo production volume is expected to be a major driver of the company's sales growth.

Iljin Hysolus holds approximately 260 billion KRW in liquidity secured through its initial public offering (IPO) last September. It is expected that this will be actively used to build overseas production bases to secure major European customers. Currently, the hydrogen business division's sales are highly exposed to fluctuations in Nexo production volume, so new customers are needed to mitigate this risk. Major European automakers planning mass production of FCEVs are seeking partners who can supply hydrogen fuel tanks locally in Europe.