[Click eStock] "Vitzrocell, a Beneficiary of the Aerospace Industry... Forecasted to Achieve Record High Performance by Next Year"

Stunning Value Research analyzed on the 13th that Bitsrocell is a true beneficiary stock of the aerospace industry and is expected to record the largest performance in its history this year and next year. No investment opinion or target price was provided.

Bitsrocell was established in 1987. It is a company whose main business areas are Li/SOCl2 batteries and Li/MnO2 batteries, which are the largest markets among lithium primary batteries.

Namgung Jun, a researcher at Stunning Value Research, said, "A smart grid is an intelligent power grid system that efficiently manages the power grid, optimizes energy consumption, and integrates renewable energy using ICT technology," adding, "In the case of lithium primary batteries, the lifespan is long and the discharge rate is about 1% per year." He added, "They are used in smart meter IoT, artificial intelligence (AI), and more."

He emphasized, "As the use of renewable energy increases and data centers increase due to AI, efficient power supply is required, so the demand for primary batteries is expected to increase."

Stunning Value Research forecasted that Bitsrocell's consolidated sales and operating profit this year will be 197.1 billion KRW and 45.5 billion KRW, respectively, representing increases of 11.9% and 20.7% compared to the previous year.

He said, "As of the first half of this year, Li/SOCl2 Bobbin, which accounts for 66.8% of sales, has its peak season in the second half," adding, "As military weapons change to electronic types, the usage of ampoule batteries and thermal batteries is increasing, and monitoring is required in high-temperature environments during oil and gas drilling, which also demands high-temperature batteries. Therefore, the growth trend of the largest performance in the company's history this year and next year is expected to continue."

He also expected it to become a beneficiary stock of the aerospace industry. He explained, "Bitsrocell is accelerating the development of Korea's first aerospace battery pack," adding, "On June 7 this year, it signed a contract with the Korea Aerospace Research Institute to develop a domestically produced battery for next-generation launch vehicles."

He analyzed, "It is expected that U.S. President-elect Donald Trump will actively promote aerospace technology development and commercialization. The U.S. government is also significantly increasing its budget for the aerospace sector for two consecutive years, and the Korean government is increasing investment in the aerospace field, including opening the Aerospace Administration this year."

He emphasized, "The contract with the Korea Aerospace Research Institute to develop lithium primary battery DM for next-generation launch vehicles proves Bitsrocell's technological capabilities and indicates that it will truly benefit from the aerospace industry."