On the 25th, Eugene Securities predicted that COWIN TECH will see an increase in orders for next-generation all-solid-state battery automation and activation equipment this year. It maintained a target stock price of 22,000 won and an investment opinion of 'buy.' COWIN TECH's closing price on the previous trading day was 14,130 won.
In the fourth quarter of last year, COWIN TECH experienced a significant increase in temporary expenses along with poor performance due to a contraction in investments in the secondary battery front market. It recorded a revenue of 33.8 billion won, a decrease of 62.3% compared to the previous year, and an operating loss of 13.1 billion won.
Last year's consolidated annual performance showed a revenue of 244.4 billion won and an operating profit of 3.6 billion won. This represents a decrease of 27.3% and 84.2%, respectively, compared to the previous year. Park Jong-seon, a researcher at Eugene Securities, explained, "The significant decline in operating profit compared to the drop in revenue is due to the increase in temporary expenses in some overseas projects and the rise in research and development (R&D) expenses for the cathode material business sector during the development and commercialization stages."
Eugene Securities analyzed that profitability is expected to improve this year due to a high backlog of orders and new orders. Researcher Park noted, "Orders are expected to increase to the late 30 billion won range in the first half of this year," adding, "Based on this, we expect performance growth along with improved profitability."
He continued, "COWIN TECH is expected to secure a stable increase in orders by dominating the initial lines of next-generation battery technologies, including orders for next-generation all-solid-state battery automation and activation equipment, domestic and overseas lithium iron phosphate (LFP) battery lines, and the entire process of cylindrical 46-inch products."