[Click eStock] "TSI, Mixing Equipment Full-Scale Growth, Earnings Upside"

Daishin Securities Report

Daishin Securities forecasted on the 24th that TSI is expected to show a growth trend in performance this year due to a large-scale order of secondary battery mixing systems from domestic clients. The investment opinion 'Buy' and the target price of 15,000 KRW were maintained.

Shin Seok-hwan, a researcher at Daishin Securities, stated, "TSI's sales this year are expected to increase by 96% year-on-year to 291.6 billion KRW, operating profit to rise by 468% to 28 billion KRW, and operating margin to increase by 6.6 percentage points to 9.6%, indicating significant growth." This analysis is based on securing large-scale orders from major domestic clients this year, as well as additional mass production orders expected from global clients, which will improve performance.

TSI's order backlog showed significant growth from 100.3 billion KRW at the end of 2021 to 254.9 billion KRW at the end of last year. Considering the equipment lead time of 9 to 12 months and the operation start time of major clients' factories, there is a strong potential for most of this to be recognized as sales this year. In particular, most of the order backlog from last year is expected to be reflected as sales within the first half of this year.

The major clients include LG Energy Solution, Samsung SDI, and ACC. The majority of sales are generated from LG Energy Solution. New orders this year are estimated to exceed 300 billion KRW, depending on the large-scale order timelines of domestic and international clients.

Researcher Shin said, "The mixing system is equipment related to the electrode process and has a high technical difficulty," adding, "Large-scale orders from domestic and international clients are expected, indicating additional upside potential in performance."