Korea Investment & Securities Co. said on the 21st that Jusung Engineering could enjoy a bounce-back benefit from China's moves to restrict exports of solar equipment technology. It kept its "buy (BUY)" rating and raised its target price to 108,000 won from 84,000 won.
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, "In the process, the Chinese government is reviewing measures to restrict exports to the United States of its core solar technologies."
According to a Reuters report, after the related talks, Chinese authorities visited the company, and the items subject to regulation are said to include production equipment based on heterojunction (HJT), a next-generation solar technology.
Chae said, "If the Chinese government restricts exports of the related equipment, with few companies having completed HJT mass-production validation, Jusung Engineering could effectively become the only alternative." While Chinese firms dominate the market for existing PERC and TOPCon methods, competition in HJT remains limited, the analyst said.
Accordingly, solar equipment revenue is expected to be fully reflected over the mid to long term. Assuming it takes about 12 months to recognize revenue, contributions to results are expected from 2028. Korea Investment & Securities Co. estimated that, as of 2028, Tesla-related revenue of about 3 GW (about 70 billion won per 1 GW) could be generated.
It also assessed that, given Tesla's initial order size reaches $2.9 billion, there is ample room for growth from additional orders ahead.