[Click eStock] "Shinsung ENG, Expected Growth in Secondary Battery Dry Room Business"

NH Investment & Securities analyzed on the 3rd that Shinsung ENG is expected to see growth in the secondary battery dry room business. Dry rooms, which are necessary for the production of materials such as battery manufacturing processes, electrolytes, and separators, are expected to see increased market demand.

Baek Joon-gi, a researcher at NH Investment & Securities, stated in the report, "The company holds a dominant market share in FFUs installed on cleanroom ceilings for semiconductors and displays, as well as in installation construction," and explained, "Since even fine dust in cleanrooms can lead to defects and affect production yield, having references is crucial for this business."

Researcher Baek added, "Furthermore, the company is expected to achieve high growth through sales of secondary battery dry rooms," and analyzed, "Dry rooms are spaces with low humidity conditions of relative humidity below 10% and dew point temperature below -10°C. Attention should be paid to the increasing demand for dry rooms due to investments in secondary batteries."

He particularly explained that dry rooms are necessary not only in battery manufacturing processes but also in the production of materials such as copper foil, electrolytes, and separators. Moisture in the manufacturing process reacts with lithium and electrolyte, reducing yield. Therefore, the role of dry rooms in assembly processes is important, and low humidity control is essential even in the electrolyte injection process.

Researcher Baek said, "As of the end of last year, the proportion of dry rooms in the order backlog is around 30%," and explained, "Currently, the only listed companies that can supply dry rooms are Shinsung ENG and Company A, and as secondary battery factories become larger, it is becoming more difficult for small companies to enter the market."

He forecasted, "The company's market share in the dry room market is 30%, and the goal is to increase it to the cleanroom level (60%). Sales this year are expected to reach 811.2 billion KRW, and operating profit 43.6 billion KRW, representing increases of 22.1% and 107.5% compared to the previous year, respectively."

He added, "Based on the high market share, and the expansion of the front industries from semiconductors and solar power to secondary batteries, it is judged to be an attractive investment destination."