[Click eStock] "KNS Benefits from Growth of 4680 Cylindrical Battery"

Hana Securities forecasted on the 17th that KNS will benefit from the growth of the 4680 battery market.

Founded in 2006, KNS is a manufacturer of secondary battery CID and Cap automation equipment. CID is a safety component that detects overheating and pressure inside the battery and cuts off the current, attached to the top of cylindrical and prismatic batteries.

Researcher Cho Jeong-hyun of Hana Securities explained, "KNS officially entered the secondary battery market in 2015 by successfully developing automated manufacturing equipment for cylindrical battery CID used in electric vehicles," adding, "They also developed BMA equipment applied to assembly and pack processes, possessing automated equipment for pouch, prismatic, and cylindrical battery components."

He continued, "The momentum to watch in the second half of this year is the expansion of the 4680 battery by major clients," emphasizing, "It is necessary to pay attention to the form factor change from 2170 to 4680 cylindrical batteries." He highlighted, "While the 2170 structure has CID attached only at the top, the 4680 battery has an open structure at both the top and bottom," and "a riveting press process is added to both electrodes."

Researcher Cho analyzed, "KNS developed automated CID and riveting equipment for the 4680 cylindrical battery last year," and "recently succeeded in supplying it for the first time domestically." He added, "The order amount is 3.6 billion KRW, which is the supply price for one piece of equipment," and "considering that about 3 to 6 riveting machines are needed per 1GWh of 4680 batteries, we expect equipment orders of at least about 10 billion KRW."

He predicted, "From next year, the expansion of 4680 batteries will proceed in earnest," and "we expect explosive orders for 4680 riveting automation equipment starting from the second half of this year."

It is estimated to achieve sales of 37.7 billion KRW and operating profit of 5.6 billion KRW this year, representing increases of 25.6% and 42.1%, respectively, compared to last year.