[Click e-Stock]"Samyoung Enters Structural Demand Expansion Phase...The Beginning of an Earnings Level Uplift"

On the 19th, Hana Securities analyzed that Samyoung is entering a full-fledged phase of strengthening its earnings capacity, backed by the completion of facility maintenance and the normalization of operations.

Samyoung's expected consolidated results for the fourth quarter of last year are forecast to show sales of 42.9 billion won, up 33.8% year-on-year. Operating profit is expected to surge 136.0% year-on-year to 4.8 billion won.

Kwon Taewoo, a researcher at Hana Securities, said, "In the fourth quarter, the company carried out large-scale maintenance work, replacing more than half of its 40 transformers, and during this process, production was suspended, which temporarily lowered the utilization rate," adding, "This was a preemptive measure to overhaul aging facilities, and the new line completed its component replacement in December and has now entered normal operation."

In the first quarter of this year, the effect of normalized operations is expected to be fully realized. Consolidated sales in the first quarter are projected to reach 47.6 billion won, up 11.1% quarter-on-quarter and 52.0% year-on-year. Operating profit is estimated at 5.8 billion won, an increase of 22.3% quarter-on-quarter and 158.0% year-on-year. There is a view that operating profit could improve to around as much as 6.0 billion won.

Kwon said, "This is the phase where the effect of normalized operations following the completion of maintenance is kicking in in earnest," adding, "Production of 5-6μm products is stabilizing, and January supply volume is expected to reach the monthly peak level in the 900-ton range." He went on, "Shipment volumes in February and March are also expected to continue on an expansionary trend."

The expansion of demand for capacitor films is also cited as a mid- to long-term growth driver. Their applications are expanding beyond data centers to robots, industrial automation, and the broader power infrastructure. Recently, adoption of capacitor films in industrial robot drive modules and power control devices has been increasing, while global data center expansion and investment in utility infrastructure are also translating into growing demand for PCS for ESS and transformers. Capacitor films in DC-Link circuits are evaluated as having effectively become a standard component thanks to their high-voltage and high-durability characteristics.

Samyoung is supplying 4-5μm-class ESS products through its new line, while 11-12μm-class products for power generation facilities are being handled by existing lines. In particular, 12μm products for Europe are priced at about 50% higher than in the domestic market, leading to a meaningful product-mix improvement effect. Additional volume requests from European customers are continuing, which is expected to make it possible to increase the share of high-margin products.

In addition, the strategy to internalize the heavy industry segment through the acquisition of Casco is underway. The expansion of cylinder casting facilities and the new investment plan of about 30 billion won signify a shift from a machining-centered structure to an integrated casting-and-machining system. This is interpreted as a strategy to enhance both cost competitiveness and earnings stability.

This year's consolidated annual results are forecast to show sales of 199.6 billion won, up 30.1% year-on-year, and operating profit of 25.4 billion won, an increase of 69.9%. Considering the outlook for achieving maximum supply volume in the first quarter, the expansion of the high-price European market, the push to convert the new line to ultra-thin products, and the potential to secure secondary battery insulation film customers, there is an expectation that earnings momentum in the first half will be further strengthened.

Kwon stressed, "In the mid-term, this is a phase where the likelihood of a structural uplift in the earnings level is increasing," adding, "As the film product mix becomes more sophisticated and the heavy industry segment makes a stable contribution to profits, the company's overall earnings structure is being reorganized into a far more improved form compared with the past."

This content was produced with the assistance of AI translation services.