[Click eStock] "Husung, Earnings Improvement Expected in 2026"

Growth Research forecasted on the 12th that "the core additive for electrolytes by Huseong will bloom brilliantly in 2026."

Huseong was established in 2006 through a spin-off from Firstec and re-listed on the KOSPI. Its main business is producing basic compounds using over 40 years of accumulated fluorine technology know-how. Its consolidated subsidiary Hantech operates in the manufacturing and supply of chemical engineering equipment. Major products include refrigerants for home appliances and industrial use, secondary battery electrolytes and additives, and special gases for semiconductor etching and deposition. The sales composition is 64% basic compounds and 36% chemical engineering equipment. Major shareholders include special related parties such as Kim Yong-min holding 46.04%, and the National Pension Service holding 6.05%.

Huseong is the only domestic producer of LiPF6 (lithium hexafluorophosphate) among secondary battery electrolyte salts and also manufactures and sells electrolyte additives such as LiBF4. The main products are produced at domestic Ulsan and Chinese factories. LiPF6 involves manufacturing and handling risks, complex reaction conditions in the manufacturing process, and requires maintaining the purity of the raw material anhydrous hydrogen fluoride at semiconductor grade through advanced refining technology know-how. Using the core crystallization process technology, the company optimizes cooling rate, stirring speed, and solution concentration to control particle size and produce the product.

Due to sluggish conditions in the secondary battery upstream market, related business losses have decreased in the first half of 2024. Although the short-term market remains weak, the planned investment of approximately KRW 106 billion in new facilities with a 2,000-ton capacity for LiPF6 to strengthen product competitiveness and respond to customer demand in the global secondary battery market is proceeding as scheduled. Due to U.S. FEOC (Foreign Entity of Concern) regulations, it has become difficult for Chinese-made electrolytes and core materials to enter the U.S. market, which is expected to benefit domestic companies. It is forecasted that performance will improve as major domestic battery cell manufacturers ramp up factory operations in 2026.