[Market Focus] Vinattech Rises 6.56% on Anticipation of U.S. Data Center Revenue Growth

Shares of Vinattech, a supercapacitor manufacturer expected to see a significant increase in revenue related to U.S. data centers, rose on September 2. In the securities industry, a company report has been released highlighting Vinattech's earnings growth and raising its target price.

As of 9:36 a.m. on this day, Vinattech was trading at 47,950 won, up 2,950 won (6.56%) from the previous trading day.

Since 2021, Vinattech has invested 8.6 billion won over more than four years to expand production facilities for hydrogen fuel cells (for hydrogen vehicles) and high-capacity supercapacitors (for electric vehicles). Supercapacitors are energy storage devices that have characteristics between traditional capacitors and batteries. They can supply or store large amounts of power instantaneously and have fast charging and discharging speeds. Supercapacitors are used in smart meters, where they supply instantaneous current for wireless transmission and store data in the event of a power outage.

DS Investment & Securities maintained its "Buy" rating for Vinattech on this day and raised its target price to 58,000 won.

An Juwon, a researcher at DS Investment & Securities, stated, "The operating profit of 9.4 billion won in 2022 was a record high, but this year, the company is expected to surpass that figure. The rapid growth of the artificial intelligence (AI) data center market is also increasing the role of supercapacitors."

An further explained, "In June, Vinattech announced a supply contract for supercapacitors for emergency power in data centers, with a contract value of 6.8 billion won. This was the company's first order related to data centers, and the products are scheduled to be supplied to a leading U.S. fuel cell company."

He added, "Next year, revenue from U.S. data centers is expected to increase to about 30 billion won, based on contracts already secured. In addition, starting next year, as system-based supply increases, there is potential for further revenue growth. The estimated operating margin for this business is around 20%, making it a key factor in next year's earnings growth."