[Click eStock] "Hanguk Alcohol, Rising Sales Proportion of Chemical Materials"

ResearchAlum analyzed on the 17th that the sales proportion of chemical materials necessary for manufacturing semiconductors and displays is increasing for Korea Alcohol.

Researcher Choi Seonghwan of ResearchAlum explained, "Sales of industrial hydrated ethanol and anhydrous ethanol account for more than 60% of total ethanol sales," adding, "Hydrated ethanol is used in hand sanitizers and washer fluid."

He continued, "Anhydrous ethanol is used in cosmetics, laboratory reagents, and secondary battery electrolytes," adding, "Although sales are not large, through the development of electronic-grade anhydrous ethanol with high purity (over 99.9%), the company has entered the precision chemical materials market such as display cleaning solutions." He emphasized, "Once sales start in earnest, the company can be re-evaluated not as an ethanol manufacturer but as an advanced materials company."

Researcher Choi analyzed, "In the chemical sector, ethyl acetate and butyl acetate, which are used in paints, coatings, inks, and adhesives, account for 53%, and thinner, which removes residues and impurities from photoresist in semiconductor manufacturing processes, accounts for the remaining 47%," adding, "Thinner for semiconductors is produced by the subsidiary Purit and is included in consolidated sales performance."

He further explained, "The proportion of high-purity chemical products used in advanced industries within the chemical sector is increasing," and "As the only domestic manufacturer of ethyl acetate and butyl acetate, the company holds more than 50% market share in the domestic market."

It is estimated that consolidated sales will reach 439 billion KRW and operating profit 30.2 billion KRW this year, representing increases of 4.3% and 10.2%, respectively, compared to last year. Along with a positive stock price outlook, a target price of 13,300 KRW was suggested.