Jeil Electric is showing strong performance. The news that it secured a new growth engine by receiving new orders from Eaton, the largest energy solutions company in North America, appears to be influencing its stock price.
As of 9:05 AM on the 20th, Jeil Electric is trading at 9,990 KRW, up 16.71% from the previous day.
Jeil Electric developed a new intelligent circuit breaker product called the ‘SMART BREAKER 2.0’ through about two years of collaboration with Eaton. Through a new partnership with Eaton’s Connected Solutions division, it secured new sales channels by supplying PCB assemblies. After prototype production, full-scale mass production will begin early next year.
According to energy consulting firm Wood Mackenzie, approximately 10 gigawatts of power storage capacity will be additionally required in the U.S. residential sector by 2028. Demand for SMART BREAKER 2.0, which can be linked with North American residential energy storage systems (ESS), high-performance electric vehicle charging facilities, and solar systems through smart grid methods, is also expected to increase.
Researcher Son Hyun-jung of Yuanta Securities explained, "Jeil Electric is solidifying its position in the North American market by exclusively supplying PCB ASSY for arc fault circuit interrupters (AFCI) to Eaton," adding, "Eaton is expanding its production capacity to respond to the rapidly increasing demand in the distribution market."
He continued, "There is a high possibility of renewing the long-term contract signed in the past this December," and added, "Stable sales growth is expected."
On the 4th, Eaton announced cooperation with company T, accelerating its entry into the smart breaker market. The focus is on strengthening energy management solutions that integrate T’s Powerwall and AbleEdge_ SMART BREAKER to provide intelligent load management and energy optimization functions during power grid failures.
Researcher Son said, "It is also expected to exclusively supply PCB ASSY for Eaton’s SMART BREAKER," analyzing, "Following the cooperation and market entry announcement with T, the largest electric vehicle company in North America, on the 4th, the mass production schedule has been moved up to the first half of next year." He added, "Jeil Electric has already established the production line," and predicted, "Additional annual sales of about 20 billion KRW will occur starting next year."
He explained, "The new contract for SMART BREAKER PCB ASSY is expected to be larger in scale than the existing AFCI orders," and said, "It will be a major driver accelerating performance improvement."
It is estimated that consolidated sales will reach 195 billion KRW and operating profit 14.2 billion KRW this year, representing increases of 35.4% and 85.4%, respectively, compared to last year.
Researcher Son assessed, "The current stock price corresponds to a price-earnings ratio (PER) of only 10.6 times based on the expected net profit of 18 billion KRW next year," and judged, "Considering the industry conditions and growth potential of new businesses, it is undervalued."
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