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Solid order backlog

4Q23 preview

For 4Q23, we expect CIS to post revenue of W74.6bn (-7% YoY) and operating profit of W8.2bn (+1,439% YoY). We cut our forecasts by 19% for revenue and 47% for operating profit in light of delays to downstream investments.

2024 outlook

For 2024, we look for revenue of W271.7bn (+66% YoY) and operating profit of W30.4bn (+80% YoY; OP margin of 11%). We raised our revenue estimate by 3% but lowered our operating profit estimate by 11%. Despite a healthy order backlog (estimated to exceed W900bn at end-2023), we revised down our operating profit estimate to reflect a longer lead time to revenue recognition and downward pricing pressure from customers.

Investment points

Key investment points for CIS include: 1) the development of next-generation equipment and continued growth in order backlog thanks to steady orders from major customers such as LG Energy Solution (LGES); and 2) expected synergies in solid-state battery materials and equipment resulting from the merger with subsidiary CI Solid.









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