Samsung Securities said on the 15th that the likelihood of passive fund inflows into VITZRO CELL increased with its inclusion in the KOSDAQ 150 index. It maintained a Buy rating and raised the target price 26.2% to 53,000 won from 42,000 won. The previous session's closing price was 45,800 won.
Samsung Securities projected that VITZRO CELL's second-quarter results this year will be in line with the market consensus, with operating profit of 22.6 billion won.
The reason is that annual results are expected to increase on the back of high-temperature batteries and military primary batteries.
Jang Jeong-hoon, an analyst at Samsung Securities, said, "In the high-temperature battery segment, after acquiring a Canadian pack company last year, an additional volume expansion opportunity opened this year due to a fire at a North American competitor," and noted, "In the military segment, expectations for growth have risen as the company proceeded last month with a contract in India for ampoule batteries for shells."
Samsung Securities assessed that the possibility of passive fund inflows has increased as of May 22 this year with its new inclusion in the KOSDAQ 150 index.
Jang said, "As VITZRO CELL has been applied to the KOSDAQ 150 index starting on the 12th of this month, there is a situation in which the possibility of passive fund inflows that track the index and program-linked volatility could increase."
Jang also explained that there is optimism about a new business for lithium capacitors, a type of secondary battery for artificial intelligence data center (AIDC) servers.
Jang said, "With the rise in AIDC power density, data center power solution companies are demanding performance upgrades of the CBU (Capacitor Bank Unit) within the server's power rack," and assessed, "We can expect growth in the new lithium capacitor (LIC) market, which has better performance than existing supercapacitors (EDLC)."
He added, "Although it is still early to predict volumes or prices, expectations for VITZRO CELL's new LIC business remain valid as it is based on lithium metal, the material structure of primary batteries."