[Click eStock] "Taepex, Monopoly in Secondary Battery Tape Market"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities announced on the 12th that it has given a buy rating and a target price of 110,000 KRW for Taifax, expecting performance growth due to increased battery shipments as a dominant player in the secondary battery tape market. The target price is based on a price-to-earnings ratio (PER) of 19.5 times for this year, which is lower than the average of 45.6 times for secondary battery material companies, and represents a 62.7% premium over the current stock price.

Taifax is a company that produces tapes essential for manufacturing secondary batteries, with an estimated market share of 80% domestically and 30% globally in the cylindrical battery market. The company’s secondary battery sales ratio is expected to expand from 42% in 2021 to 56% in 2023 and 65% in 2025.

Researcher Hanul from NH Investment & Securities stated, "Despite having a dominant market share among global major cell manufacturer clients, Taifax’s current market value is excessively low," and added, "We believe it is necessary to apply a valuation level comparable to that of secondary battery material companies."

Since becoming a subsidiary of Hansol Chemical, Taifax has restructured its business portfolio focusing on growth and profitability. This includes transitioning its core packaging tape business to an original equipment manufacturer (OEM) model, reorganizing its film business, expanding the proportion of its secondary battery business, and increasing the share of eco-friendly products.

Researcher Han emphasized, "The performance of the Unilab division and the consumer goods division is expected to improve steadily," and added, "The cash flow generated from these two divisions will be used to expand the production capacity of secondary battery tapes, which will be a key growth driver leading the company’s overall performance. Taifax is expected to build a business portfolio that combines both growth and stability, highlighting rapid performance growth within the secondary battery market."