"Solus Advanced Materials Faces Supply Bottleneck... PBR at Historic Low"

On July 27, SK Securities evaluated Solus Advanced Materials, stating, "The current market situation makes it difficult for suppliers to keep up with demand, and its price-to-book ratio (PBR) is at a historic low."

In a report released the same day, Park Hyungwoo, an analyst at SK Securities, said, "A turnaround to profitability is expected either by the end of this year or early next year, and shifts in supply and demand are clear." He explained, "Starting in the second half of the year, the situation in which suppliers have trouble keeping up with demand will become more pronounced." He added, "While the market still focuses solely on concerns over customer companies' profitability, cell makers and automakers unable to secure copper foil may see their operating rates fall even further. Once changes in copper foil prices begin, profitability is likely to improve faster than expected."

In the second quarter, Solus Advanced Materials reported KRW 101.9 billion in sales and an operating loss of KRW 21.3 billion. Revenue from battery copper foil reached KRW 75 billion, with shipments up 40% quarter-on-quarter.

Park also commented, "This year's consensus-based PBR is 0.7 times, a historic low. Key investment points include the full-scale ramp-up of supplies to North American clients; Solus' unique position as the only local supplier with production bases in Hungary and Canada; and the potential for price increases."

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