[Click eStock] "J.O, Expected Earnings Growth This Year"

SK Securities analyzed on the 29th that J-O is expected to show performance growth this year. No investment opinion or target price was presented.

J-O recorded sales of 31.6 billion KRW and operating profit of 1.9 billion KRW in the fourth quarter of last year. This represents increases of 61.5% and 75.6%, respectively, compared to the same period last year. Do-hyun Kim, a researcher at SK Securities, explained, "Despite steady profits in the carbon nanotube (CNT) sector, the impact of year-end one-time expenses in the plant division was reflected," adding, "Despite SK On's poor performance, J-O is expected to have succeeded in defending CNT performance through efforts to diversify its existing customer base, including expanding its share in China."

Researcher Do-hyun Kim said, "Sustained external growth is expected through expanded volume in China this year and the start of shipments to new customers in the second half," and added, "From the perspective of J-O's customer diversification, the poor shipment performance toward SK On will act as a short-term factor hindering growth, but it should be viewed from a mid- to long-term perspective as a reduction in business risk."

He predicted, "After capacity expansion and preparation for mass production this year, it is expected to enter a full-fledged growth trajectory," and noted, "Considering the currently low adoption rate of CNT by front-end customers, even if the growth of secondary batteries is adjusted compared to past forecasts, demand for CNT materials is expected to continue steady growth."