Kemtros is showing strong performance. The stock price appears to be influenced by the analysis that additive sales will increase as the three domestic secondary battery cell manufacturers accelerate their entry into the LFP battery market.
As of 9:15 AM on the 29th, Kemtros is trading at 12,130 KRW, up 20.20% from the previous day.
Researcher Jo Jeong-hyun of Hana Securities explained, "Kemtros supplies additives with high-temperature resistance and battery life extension functions to the three domestic cell makers through electrolyte manufacturers" and "LFP will increase additive content due to the need to improve its low energy density."
The three domestic "battery giants"?Samsung SDI, LG Energy Solution, and SK On?vied to announce their transition to LFP batteries at Korea's largest secondary battery expo, InterBattery 2023. LG Energy Solution and SK On unveiled prototypes, while Samsung SDI officially declared its development.
He added, "Since the second half of 2020, we have actively expanded supply from small batteries to medium and large EV and ESS batteries," and "additive sales surged from 7.4 billion KRW in 2020 to 15.4 billion KRW in 2022."
He emphasized, "To meet additive demand, the company plans to expand its overall production capacity to 100 billion KRW in sales by the end of 2023 and 140 billion KRW by 2024."
Researcher Jo also analyzed, "PVDF is a key material for manufacturing cathode binders," estimating that "the annual domestic import volume is about 100 billion KRW." Furthermore, "Kemtros acquired PVDF manufacturing technology from the Korea Research Institute of Chemical Technology" and "is the only domestic company building pilot mass production facilities and conducting research and development," he added. He expects benefits from the localization of materials, parts, and equipment in the future.
It is estimated that this year’s sales will reach 71.2 billion KRW and operating profit 7.6 billion KRW, representing increases of 28.4% and 62.0%, respectively, compared to last year.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
