Hana Securities analyzed on the 7th that Sinseong ST secured new orders worth 2.3 trillion KRW for energy storage system (ESS) components, expecting explosive growth.
Sinseong ST, established in 2004, is a manufacturer of battery components for electric vehicles and ESS. Its main products are busbars and battery module cases. Busbars, primarily made of copper, are key conductive components that connect current between battery modules and packs.
Registered as a first-tier vendor for LG Energy Solution in 2013, Sinseong ST began participating in secondary battery component development from 2014. It expanded its global presence through the establishment of a Polish subsidiary in 2018 and a Nanjing, China subsidiary in 2019. In 2022, it succeeded in diversifying its client base by registering as a first-tier vendor for SK On, and in the first quarter of this year, it recorded a sharp increase in order backlog by securing new orders for LFP ESS components.
Researcher Cho Jeong-hyun of Hana Securities stated in the report that “Sinseong ST is a supplier of core ESS components to domestic battery companies, and co-growth is expected,” adding, “In the first quarter of this year, it already succeeded in securing new orders worth 2.3 trillion KRW for ESS components from domestic battery company S.”
He analyzed, “From 2026, the revenue will be fully reflected, with approximately 300 billion KRW in new sales expected,” and “Next year, a local production facility for LFP ESS containers worth 40 billion KRW is expected to be established in Kentucky, North America, anticipating explosive growth in the future.”
Demand for ESS is expected to increase due to the expansion of power infrastructure for AI data centers by global big tech companies. In particular, ESS installation is essential for eco-friendly energy transition, and the installation volume of ESS is increasing due to the decline in battery prices, which account for about 90% of the cost. As of last year, domestic companies’ global market share was only 10%, but an expansion of ESS battery market share is expected in the future due to the impact of the IRA.
He stated, “Sinseong ST’s performance this year is expected to increase by 3.2% in sales to 128.7 billion KRW and by 48.1% in operating profit to 12.4 billion KRW compared to the previous year,” and analyzed, “Despite the slowdown in the electric vehicle market this year, performance defense is possible due to the expansion of ESS component volume.”
He added, “It is judged that the recent rise in copper prices can be passed on to product prices, and profitability improvement is expected from the second half of the year.”
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