On the 23rd, Jang Jeong-hoon, an analyst at SamsungSecurities, stated, “As ceasefire negotiations for the Middle East war—one of the factors driving the first-half stock rally—began in mid-June, a stock price correction was inevitable,” adding, “We view this correction as an opportunity to buy at a favorable price and therefore maintain our ‘Buy’ recommendation.” In fact, VITZROCELL Co., Ltd.’s stock price fell by approximately 43% from June 1 to July 22.
VITZROCELL Co., Ltd.’s second-quarter revenue was 76.3 billion won, and operating profit was 19.6 billion won, both falling short of the market consensus (operating profit of 22.6 billion won). This was due to the inclusion of one-time expenses totaling approximately 4 billion won, such as employee incentives.
However, analysts assess that profitability improved compared to the previous quarter when excluding these one-time factors. Revenue from the core “Bobbin” battery division increased by 12% year-over-year, while the high-margin high-temperature battery division grew by 102%, contributing to improved profitability in the company’s core business.
SamsungSecurities also revised its full-year earnings forecast upward. It projected that this year’s revenue would reach 321.6 billion won, a 32% increase from the previous year, and operating profit would total 98 billion won, resulting in an operating profit margin (OPM) of 30.5%—the highest annual profitability on record.
Analyst Jang noted, “In the high-temperature battery segment, the impact of reflecting consolidated results from last year’s acquisition of a Canadian battery pack manufacturer, combined with the effects of fires at North American competitors this year, is expected to lead to growth and improved profitability in the second half of the year.”
The target price was set at 43,000 won, lower than the previous estimate. This reflects the fact that the average price-to-earnings (P/E) ratio of peer companies in the rechargeable battery sector has fallen from 52.6x to 40.3x.
However, the firm maintained its “Buy” rating. SamsungSecurities noted that while the potential for a new business in lithium capacitors for artificial intelligence data center (AIDC) servers remains valid, valuation pressures are expected to decrease significantly as profitability in the existing primary battery business improves, based on an estimated net cash position of 181.3 billion won in 2026.
