[Click eStock] "Daejoo Electronic Materials, Continued Growth in Silicon Anode Materials... Target Price Up"

NH Investment & Securities analyzed on the 15th that high growth of silicon anode material (SiOx) is expected again this year for Daewoo Electronic Materials. The investment opinion was maintained as 'Buy,' and the target price was raised to 130,000 KRW.

Jumin Woo, a researcher at NH Investment & Securities, explained, "In addition to the continued high growth of SiOx expected in 2025, commercialization of oxide-based all-solid-state materials is anticipated in 2026," adding, "Beyond that, there is continuous growth potential supporting multiple premiums up to the commercialization of pure silicon and CNT conductive additives (powder)."

He added, "We expect a further expansion of the multiple premium."

NH Investment & Securities expects the number of automobile models using Daewoo Electronic Materials' SiOx to increase. The expected sales revenue of SiOx this year is 90.2 billion KRW, a 79% increase compared to the previous year.

He said, "Along with steady sales of existing models, five new models (Ioniq 3, Ioniq 9, two Stellantis models, and one Tesla model) are expected to be added," and added, "When converted to battery capacity, the SiOx sold by Daewoo Electronic Materials in 2024 amounts to only about 21 GWh, indicating significant potential for future expansion."

He also added, "The contribution of SiOx to operating profit is expected to sharply increase from 28% in 2025 to 40% in 2026 and 60% in 2027."