[Click eStock] "YujinTech, Growth Rate Increases with Secondary Battery Operating Rate Recovery"

NH Investment & Securities forecasted on the 27th that the growth of Yujin Technology will accelerate once the operating rate of secondary battery companies recovers. They analyzed that the supply of precision molds, consumables essential for secondary battery manufacturing, will increase.

Yujin Technology primarily produces precision molds (notching molds) dedicated to secondary battery manufacturing. This segment accounts for 76.4% of their sales. Sales of machine parts and automation equipment such as knife units, friction shafts, notching press units, and lamicutter units make up 22.5% of the total. Major clients include Samsung SDI, LG Energy Solution, and PNT.

Sehun Son, an analyst at NH Investment & Securities, stated, "In the case of notching molds, companies that possess carbide alloy and heat treatment technology must produce them to maintain durability," adding, "Due to technological barriers, there are only two companies that manufacture notching molds." He explained, "Among the two, Yujin Technology supplies Samsung SDI exclusively and provides 60% of the total volume to LG Energy Solution."

Analyst Son analyzed, "Notching molds are consumable products that require maintenance such as polishing and repair because wear occurs through repeated cutting operations," and added, "Sales are generated not only from new supply but also from maintenance." He also projected, "Yujin Technology plans to expand its lead tab production facilities, and once the expansion is completed, production capacity (capacity) will increase from the current 1 million sets per month to 2 million sets by the end of 2025."

Lead tabs are components that electrically connect the cathode and anode inside the secondary battery electrolyte to the outside. The performance and quality of lead tabs are known to significantly affect the stability and lifespan of secondary batteries.

He said, "Since most of Yujin Technology's products are consumable parts, their performance is linked to the operating rate of secondary battery companies," and predicted, "Although secondary battery companies are going through a downturn, once the operating rate recovers, the supply volume will rapidly increase."