[Click eStock] "JSTEC Accelerates Entry into India's Secondary Battery Business"

Hanyang Securities analyzed on the 3rd that the IBC order announcement made the previous day for J-STEC is a prelude to sales growth, stating that the secondary battery business is being fully launched in India.

Lee Jun-seok, a researcher at Hanyang Securities, said in a report on the same day, "The order announcement of 47 billion KRW for IBC made the previous day is regarded as a signal for the company's sales expansion," adding, "Along with last year's 50 billion KRW, the company has secured all orders of 0.5GWh scale presented earlier this year, and as a result of producing prototypes at the domestic Seonghwan factory, a high yield was confirmed, so the scheduled 1.5GWh scale order next year is expected to be achieved without difficulty."

IBC (International Battery Company), a US battery cell company, plans to expand its secondary battery cell factory in Karnataka, India, to a scale of 50GWh by 2033. The company holds a 20% stake in IBC as the second-largest shareholder and has signed an agreement to turnkey build an automated process solution within the factory.

Researcher Lee Jun-seok explained, "Adding the 50 billion KRW amount ordered last year and the 47 billion KRW ordered the previous day, the company has already received orders worth about 100 billion KRW (0.5GWh scale)," and added, "Although this year's performance may vary depending on the timing of revenue recognition, since this amount corresponds to the volume for 0.5GWh, there seems to be no disagreement regarding sales growth considering the future expansion timeline."

He also said, "Additional orders for AGVs (Automated Guided Vehicles) are expected to occur in the third quarter, so about 70% of the company's sales this year will come from the secondary battery business division," and analyzed, "Considering the current order backlog amount and expected future orders, the market capitalization of 123.4 billion KRW is judged to be significantly undervalued."