[Click eStock] "Jeil M&S, Attractive IPO Price Level Compared to This Year's Guidance Performance"

On the 28th, NH Investment & Securities analyzed that the offering price level of Jeil M&S, which is preparing for an initial public offering (IPO), is attractive compared to this year's guidance performance.

Baek Joon-gi, a researcher at NH Investment & Securities, stated, "Jeil M&S is a company that has secured a foundation for long-term growth through diversification of its client base," adding, "Compared to competitors, it has well diversified clients including Samsung SDI, LG Energy Solution, and Europe's Northvolt, and due to the explosive expansion of its clients, the company's order backlog has significantly increased, indicating high visibility for sales growth."

Researcher Baek presented two additional differentiating points for Jeil M&S compared to two domestic competitors. While domestic competitors are focused solely on the secondary battery business, Jeil M&S has secured clients in heterogeneous sectors such as pharmaceuticals, chemicals, and defense in addition to secondary batteries.

Furthermore, it is analyzed as a competitive advantage that Jeil M&S is the only domestic supplier of mixing equipment to Northvolt, having secured orders for both Northvolt's Line 1 and Line 2, thereby gaining a leading position in the overseas secondary battery mixing market. Northvolt is currently preparing to build a battery factory targeting 2026 with subsidies from the German government.

The active overseas expansion of domestic clients was also cited as an investment point. While Samsung SDI had a high proportion in the past, recently LG Energy Solution's investments in North America have been actively progressing. It is expected that there will be benefits from additional investments in Hungary and the Indiana plant for Samsung SDI, and investments in Michigan 2 and Ontario plants in Canada for LG Energy Solution, which is anticipated to positively impact the company's growth.

He analyzed, "Based on the company's guidance in the securities registration statement, with sales of 348.7 billion KRW (a 143.6% increase from the previous year) and operating profit of 32.6 billion KRW (a 1690.0% increase from the previous year), the price-to-earnings ratio (PER) of the desired offering price band per share is 12.5 to 15.0 times, showing valuation attractiveness compared to peers in the same industry."