[Click eStock] "Vitzrocell, Expected Broad Demand Expansion This Year"

KB Securities analyzed on the 3rd that wide-ranging demand expansion is expected for Bitsrocell this year. No investment opinion or target price was provided.

Bitsrocell is a company specializing in the manufacturing of industrial lithium primary batteries. It mainly supplies products to smart meters, defense, and the oil & gas industries. KB Securities forecasted that Bitsrocell will achieve sales of 247.5 billion KRW and operating profit of 69.5 billion KRW this year, representing increases of 20% and 37% respectively compared to the previous year.

Researcher Chaeyoon Han of KB Securities said, "Ongoing demand for smart meter transitions, expanding demand for ampoules and thermoelectric batteries, and increased oil & gas drilling demand in the U.S.," adding, "Given the high export ratio, performance improvement due to exchange rate effects is also a point to look forward to."

He also evaluated that benefits from U.S. policy changes can be expected this year. He explained, "With the election of U.S. President Donald Trump, policy changes related to oil & gas drilling in the U.S. are anticipated, which is likely to lead to an increase in rigs (RIG). The number of U.S. rigs hit a low of 250 in 2020, recovered to 780 in 2022, and during this period, Bitsrocell’s high-temperature battery segment also experienced concurrent growth."

He added, "Considering that during Trump’s first term in 2018-2019, the number of U.S. rigs exceeded 1,000, benefits from future changes in U.S. drilling policies are expected."