[Click eStock] "JSTEC Directly Benefits from IBC India Secondary Battery Expansion"

Hanyang Securities analyzed on the 4th that JSTEC is expected to directly benefit from the expansion of the battery cell factory for secondary batteries by the US company IBC in India.

JSTEC is a specialized manufacturer of smart equipment in various fields such as display, semiconductor, and secondary batteries. It recorded sales of 570.8 billion KRW during the display boom in 2017, but has since recorded sales around 100 billion KRW. In the third quarter of this year, the display business accounted for 38% of sales on a consolidated basis, but JSTEC's future growth engine lies in the secondary battery division.

Lee Jun-seok, a researcher at Hanyang Securities, stated in the report on the same day, "The US company IBC plans to expand a 50GW battery cell factory through its India IBC subsidiary. JSTEC acquired a 20% stake in IBC and recently signed contracts worth about 50 billion KRW, including an order announcement in November."

Researcher Lee said, "It is expected that turnkey process solutions will be established for all processes of secondary battery electrodes/assembly/formation at the India factory," and added, "Considering that the initial expansion cost is about 400 billion KRW per 2GWh and that the lines will be sequentially built from next year, JSTEC's performance will surpass the glory of the past display boom and enter a new phase."

He also analyzed that growth in Automated Guided Vehicles (AGV) is expected. He explained, "AGVs are logistics robots used within transfer manufacturing lines, and an agreement with a domestic cell maker will be signed early next year to supply about 20 billion KRW worth to one line," adding, "Cost reduction in secondary battery manufacturing lines will continuously increase demand for unmanned robots, and sales growth is expected from next year with the acquisition of additional customers."

Furthermore, he said, "If JSTEC wins the entire solution contract for IBC's India secondary battery factory, synergy with the application of AGVs will also be achieved," and forecasted, "With cash cow from existing businesses and active performance in the new secondary battery business, sales of 172 billion KRW and operating profit of 17.7 billion KRW are expected next year."