[앤츠랩]Netting a lot of meat and waiting for water: Hansol Chemical

Thank you very much for visiting the healthy food restaurant’Anz Lab’ today. It has been noisy for a month or so over whether the Hyundai Motor Group will produce Apple cars. Come to think of it, a few years ago, I thought that IT was the future, but now, mobility, including automobiles, seems to be a more comprehensive future. Secondary battery producers are in the spotlight, and large companies that seemed to be a little farther away from automobiles are rushing into the battery, electrical, and hydrogen businesses. It is a scene where money and capabilities from around the world gather around automobiles.

According to a recent Morgan Stanley report, smartphones are in a market of 500 billion dollars (about 553 trillion won) a year, while mobility is a 10 trillion dollars (about 1075 trillion won) market. It is an analysis that even if Apple eats only 2% of the mobility market, it will reap the scale of the smartphone business.

For now, Hyundai Motor Company announced that “there is not proceeding with discussions on the development of autonomous vehicles with Apple.” Not many people seem to see this as a very halted negotiation. Some people ask,’If we don’t negotiate a self-driving car, do we produce electric cars?’ Even after the announcement of the’stop’ of the Apple car discussion, the stock price of Hyundai Motor Group fell on the same day and then rose again.

Hyundai Motor Company is one of the few automakers in the world with its own electric vehicle platform called E-GMP. If eco-friendly vehicles are mandated by the European Union and China, such as Norway and the Netherlands banning the sale of internal combustion locomotives (gasoline, diesel, etc.) in 2025, only four years later, demand for electric vehicles will inevitably increase. Apple car production is booming, but Hyundai Motor Company is an item that will be in the spotlight in the electric car era even without an apple car. It’s time to put aside interest in Apple cars for a while and look into how the composition of’Tesla = iOS, Hyundai Motor, Volkswagen, GM, etc. = Android’ will unfold.

Netting a lot of meat and waiting for water: Hansol Chemical

When we invest in stocks, it seems that we have no choice but to see the growth potential of the company. Because the stock price has to go up. ^^ These promising industries include semiconductors and electric vehicle-related stocks. There are companies that make all of the products used in the semiconductor, electric vehicle, and display processes. It is Hansol Chemical.

Some of you may be new to Hansol Group. It is a group of large corporations founded on the basis of Jeonju Paper, which was a Samsung subsidiary, by Lee Byung-cheol, the eldest daughter of Samsung Group founder and the eldest elder sister of Samsung Electronics Chairman Lee Kun-hee, Lee In-hee. (However, currently Hansol Holdings, chairman Cho Dong-gil, the third son of this advisor, has no stake in Hansol Chemical, the largest shareholder of Hansol Chemical, the eldest son, and honorary chairman Cho Dong-hyuk.)

Hansol Chemical was launched in 1980 under the name Korea Perlockside. Hydrogen peroxide is hydrogen peroxide, which is often recommended as a disinfectant for wounds. If you make’ultra-high purity hydrogen peroxide’ by removing impurities and contamination at the factory, it can be easily used for cutting or cleaning semiconductors and display panels.

Hansol Chemical occupies 80% of the domestic ultra-high purity hydrogen peroxide market. All of the leading Korean companies you know, such as Samsung Electronics and SK Hynix, use this company’s products. There are many chemical companies in Korea, but Hansol Chemical’s operating margin is in the 25% range, which is five times that of other chemical companies. That means that hydrogen peroxide business is a net exhaust. The operating margin is expected to reach 30% this year.

Hansol Chemical does not make only hydrogen peroxide. Its flagship products are precursors for semiconductors, quantum dot materials for displays, and binders for secondary batteries.

◦ PrecursorIs also known as a precursor, and is a material that attaches a thin film thinner than 0.001㎜ to the wafer (round base plate) when making a semiconductor. Since a thin film is literally too thin to be attached to it by machine or hand, the precursor causes a chemical reaction, causing a chemical reaction that causes the thin film to go to the wafer and stick to it.

◦ Quantum dot“” means a lot of people who are interested in games or TV have heard of it. ‘Quantum dots’ are ultra-fine semiconductor particles that are tens of thousands of times the size of a hair. It is in the spotlight because it provides ultra-high-density image quality and detailed colors while saving power.

◦ Secondary battery anode binder I entered the business last year (2020). Currently, Hansol Chemical is the only anode binder manufacturer in Korea, and all anode binders are imported from Japan. The negative electrode binder serves to fix the negative electrode material during charging and discharging. It is supplied to Samsung SDI and SK Innovation.

In the case of last year, the proportion of sales was 18 billion won for hydrogen peroxide, 60 billion won for precursors, and 84 billion won for electronic materials such as quantum dots. The hydrogen peroxide is quite large. In addition, after the outbreak of Corona 19, we are also producing NB latex, which is used for surgical gloves and has exploded in demand.

Hansol Chemical’s stock price has risen steadily and calmly over the past year. In the securities market, Hansol Chemical is expected to achieve the highest performance this year. Hydrogen peroxide will see the effect of expanding Samsung Electronics’ Pyeongtaek and Xi’an plants in China, and SK Hynix’s M16 line, and quantum dot sales will increase as Samsung Electronics launches new mini LED TVs. In particular, we plan to release the next-generation QD OLED material in the second half of this year, and this new product is said to cost 5 times more than the previous one per display! As the sales of anode binders for rechargeable batteries also increase rapidly, the proportion of operating profit is expected to exceed 10% this year.

In short, Hansol Chemical’s demand for downstream industries (semiconductors, electric vehicle batteries, displays) is rapidly increasing in all business sectors, and it is expected that new products and high-value-added products will be released this year to achieve unprecedented performance.

Currently, there are not clear factors that will negatively affect Hansol Chemical’s stock price. Although it has not been made visible, the unexpected sluggish semiconductor industry, a sudden slowdown in TV sales, or a decrease in electric car sales due to subsidies in certain countries may affect sales. by Ants Lab

★★★★★ 5/5 Unless there is a natural disaster, at least this year is a good stock

The name that fears stock investors: inflation

The prerequisite for the stock market boom now is the expectation that the central bank (mainly the US Fed) will keep interest rates low for a long time. It is also said that President Biden is releasing $1.9 trillion (about 2100 trillion won) with economic stimulus measures, including’disaster subsidies’, but the interest rate is low, so all the money is rushing to the stock market. For now, the Fed has promised to keep interest rates low and to keep buying Treasury bonds to surpass the 2% inflation target (which has been low for a long time).

However, recently, there have been voices of concern over inflation. I used a stimulus package last year, but is President Biden’s stimulus package too excessive, or is it encouraging inflation? It is pointed out that this is also a precursor to inflation, as the demand for goods has risen by 180% compared to last year, and automotive semiconductors are on the verge of exhaustion due to too many people who want to buy cars. In addition, the international oil price (Brent oil) has also exceeded $60 per barrel for the first time in a year.

Wall Street estimates that there is a 20% chance that consumer prices will increase at least 3% per year over the next five years. When inflation occurs, the Fed is forced to raise interest rates. The British Economist reported that the rate hike would shock the US stock market and be a disaster for emerging markets. This happened once in 2013. The so-called’taper tantrum’ occurred when the Fed made a remark suggesting that the stimulus would be reaped sooner than expected.

Interestingly, there are constant comments such as’the global stock market is a bubble’ and’you have to worry about inflation’, but everyone is saying that it’s okay in the short term. Therefore, ants, please do not give up your belief in the stock market and do not be buried by the trends of each stock, and keep an eye on the global economic trend and strive.

As Elon Musk bought $1.5 billion (about 1.6 trillion won) of bitcoin and Mastercard said it would introduce a cryptocurrency payment mode, recently American reporters asked CEOs of large corporations’Do you have any plans to introduce bitcoin?’ This is done. Here are some of the representative answers.

◦ “We have no plans to invest in Bitcoin, end. In the future, I will keep an eye on it and weigh it.” -Meri Barra GM CEO

◦ “(Bitcoin) There was a discussion, but it ended very quickly. We will keep our cash safe.” -Dara Kosroshahi, Uber CEO
◦ “We will, perhaps, not invest money in such financial assets.” -John Rainey CEO, PayPal