[Edaily Reporter Kwon Oh Seok ] Shinhan Investment Securities announced on the 4th that it is maintaining its “Buy” rating on VITZROCELL Co., Ltd.(082920)but lowering its target price from 70,000 won to 45,000 won.

Lee Byung-hwa, an analyst at Shinhan Investment Securities, stated, “It is time to rebuild a sustainable growth business model and regain growth value,” adding, “We recommend actively buying the stock at a price-to-earnings ratio (PER) of around 15 times based on projected 2027 earnings.”
He emphasized, “Existing flagship products, such as high-temperature batteries, are maintaining sales growth of over 20%. Furthermore, to prepare for entry into new businesses—such as suicide drones and AI data centers (AI DCs)—the company has officially announced additional medium- to long-term capacity expansions through 2031, which will strengthen its growth momentum.”
First-half revenue totaled 144.4 billion won (up 30.7% year-over-year), and operating profit reached 39.0 billion won (up 25.1%), posting solid results in line with estimates. The company recorded strong year-over-year growth driven by its core products, including high-temperature batteries (up 196.8%) and ampoules and thermal batteries (up 60.2%). The analyst noted, “The first-half operating profit margin of 27.2% (-1.2 percentage points) met market expectations when accounting for one-time labor costs in the second quarter,” adding, “The stock price is in a phase of reduced volatility following an excessive decline of more than 50% from its May high.”
For the second half of the year, the analyst projected revenue of 154.5 billion won (+16.8%) and operating profit of 44.3 billion won (+17.8%). He analyzed, “While concerns about second-half profitability are growing due to the fire at the battery storage warehouse and exchange rate volatility, we assess that there will be no production schedule disruptions resulting from the fire, and that the exchange rate at current levels will not have a significant negative impact on earnings.”
He added, “The current stock price, at around 15 times P/E based on estimated earnings for 2027–28, reflects a valuation where the premium for new businesses has been eroded,” and noted, “Once the revenue contribution from Rising Star products is confirmed, confidence in growth is expected to rise again, and the previously lost premium is projected to be restored.”