[Click eStock] "Seojin System, Time to Fully Reap the Benefits"

On the 14th, SK Securities maintained its investment opinion of 'Buy' and target price of 25,500 KRW for Seojin System.

Seojin System, which recorded sales of 392.4 billion KRW in 2019, achieved sales of 787.6 billion KRW in 2022. Despite global crises such as the COVID-19 pandemic, it achieved significant external growth. This was thanks to bold proactive investments.

Seojin System, which has grown based on telecommunications equipment and mobile phones, is highly likely to see future growth led by the Energy Storage System (ESS) sector. The expansion of renewable energy distribution inevitably stimulates demand for ESS. This is because energy storage devices like ESS are necessary to complement the generation variability issues of solar and wind power. This is also why Seojin System’s quarterly ESS segment performance is on an upward trend.

Amid changes in the energy paradigm, the global ESS market is likely to show growth exceeding previous forecasts, and Seojin System has secured more than half of the top five global ESS companies as clients. The increasing number of public disclosures of ESS single sales and supply contract signings confirmed this year serves as evidence.

Na Seungdoo, a researcher at SK Securities, analyzed, “Seojin System now only has to reap the fruits of its efforts. It possesses a die-casting facility of a scale rarely seen worldwide, and vertical integration and economies of scale act as both competitive advantages and entry barriers.”