Jusung Engineering is surging 18% in early trading on the 21st. It is seen as following reports from the securities industry that a rebound benefit is expected as China moves to restrict equipment exports even as Tesla is willing to purchase solar equipment.
As of 9:00 a.m., Jusung Engineering is trading at 108,200 won on the Korea Exchange, up 16,000 won (18.25%) from the previous session. It traded as high as 110,800 won intraday, marking a new 1-year high.
On this day, the securities industry issued analysis that exports of solar equipment bound for Tesla are expected.
Chae Min-suk, an analyst at Korea Investment & Securities Co., said, "There was a report that Tesla is in talks to purchase about $2.9 billion worth of solar panel manufacturing equipment from Chinese equipment maker Suzhou Maxwell Technologies," and noted, "If the Chinese government restricts exports of related equipment, with few companies having completed mass-production verification for HJT, Jusung Engineering could be virtually the only alternative."
Accordingly, solar equipment revenue is expected to be fully reflected in the mid to long term. Assuming it takes about 12 months until revenue recognition, it is expected to contribute to earnings from 2028. Korea Investment & Securities Co. estimated that, as of 2028, Tesla-related revenue of about 3 GW in capacity (about 70 billion won per 1 GW) could occur.
It also assessed that, given Tesla's initial order size reaches $2.9 billion, there is ample room for growth from additional orders going forward.