[Edaily Reporter Kwon Oh Seok ] iM Securities announced on the 26th that it is maintaining its “Buy” rating on SEOJIN SYSTEM CO., LTD(178320)but lowering its target price from 68,000 won to 65,000 won.

Shin Hee-cheol, an analyst at iM Securities, stated, “We forecast third-quarter revenue of 529 billion won (up 160% year-over-year) and operating profit of 54.2 billion won (a return to profitability). While we are revising our operating profit estimate downward to reflect the cost burden associated with setting up the U.S. energy storage system (ESS) plant, the trend toward earnings normalization driven by the recovery in ESS shipments remains valid.”
He added, “With the delayed setup of the U.S. ESS assembly plant now complete, ESS shipments are understood to be proceeding normally starting in the third quarter, and revenue from the semiconductor equipment business segment is also expected to grow for the fifth consecutive quarter, supporting the improvement in earnings.” “Revenue in 2026 is projected to reach a record high of approximately 1.817 trillion won (+70.5%), and operating profit is expected to be 68 billion won (returning to profitability),” he said.
He further explained, “While a downward revision of profit estimates and the target stock price was unavoidable, reflecting the initial cost burden of the new ESS assembly plant in the U.S. and the pace of profitability recovery, the medium- to long-term growth trajectory—based on future performance normalization and capacity expansions by Chonbang customers—remains valid.” He added, “SEOJIN SYSTEM CO., LTD’s competitive edge lies in its ability to stably supply the volumes demanded by customers, based on large-scale, capital-intensive (Capex) production facilities and in-house process capabilities.”
Analyst Shin emphasized, “Globally, excluding Chinese companies, there are only a limited number of electronics manufacturing services (EMS) providers capable of handling large-scale capital investments and responding to their customers’ capacity expansions. Although earnings improvements have been delayed due to proactive investments to expand production capacity and delays in customers’ production schedules, we believe the third quarter marks the beginning of a phase where these investments translate into revenue.”
He added, “Given the current strong demand for semiconductor equipment and the simultaneous expansion of ESS businesses by major domestic battery manufacturers, we believe that once the leverage effect from revenue growth becomes visible, we can expect a full-scale rise in the stock price.”