[Click eStock] "Binatek, Expecting Company-wide Structural Growth"

Sangsangin Securities analyzed on the 15th that Vinatek is expected to experience company-wide structural growth. They maintained a 'Buy' investment rating and a target price of 80,000 KRW.

Sangsangin Securities forecasted that Vinatek's sales and operating profit for the first quarter of this year will reach 14.5 billion KRW and 1.1 billion KRW, respectively. Compared to the same period last year, sales are expected to increase by 19%, and operating profit will turn positive. Junho Lee, a researcher at Sangsangin Securities, stated, "Rather than growth in a specific business sector, company-wide structural growth driven by industry expansion is expected. Strong sales of supercapacitors for automotive electronics, data centers, and meters are anticipated, and overall demand for building fuel cell MEA and hydrogen commercial vehicle supports is expected to expand in 2024."

Sangsangin Securities projected that Vinatek's sales and operating profit for this year will increase by 27% and 193% year-on-year to 69.7 billion KRW and 8.8 billion KRW, respectively. He added, "With the full-scale delivery of meter-type supercapacitors to the Indian market starting, growth is expected from the second quarter."

He also noted, "Regarding tram-type supercapacitors, which have been consistently mentioned in reports, bidding preparations are underway. The hybrid ESS demonstration project conducted with Korea Electric Power Corporation was completed in 2023. Once other procedures such as economic feasibility analysis are completed, full-scale sales are expected to begin in 2025, but sample sales can be anticipated in 2024."

He explained, "The cooperation with Company B, a key factor driving Vinatek's stock price, is progressing smoothly. Since the full-scale supply period is expected in 2026, some patience is required." He added, "Until then, attention should be focused on the growth trend of the core business."