DEEP RESEARCH · JEIO

JEIO: Structural Re-rating from Battery Conductive Agent Vendor to AI Component & EUV Pellicle Nanomaterials Play

4Q25 results, Samsung SDI ramp, and the Isu Petasys acquisition as multiple re-rating catalysts

Date: 2026-02-20 · Fundamentals & M&A synergy analysis · Naver blog original

0. Bottom line first

1. Company overview and the moat

1.1. Core business structure

JEIO's model fuses 30+ years of plant engineering process design (since 1994) with 20+ years of nanomaterials synthesis R&D. Two segments: (1) battery & advanced materials — carbon nanotube (CNT) powder as a conductive additive for Li-ion cathodes/anodes; (2) plant engineering (EPC) — process design, procurement, construction across battery materials, semiconductor materials, fine chemicals, and carbon-neutral facilities.

Official fact: Replacing carbon black with JEIO's CNT cuts conductive-agent loading by 70~80%. The freed volume is filled with active material, boosting energy density and fast-charge performance.

Official fact: The flagship EPC contract is with EcoPro BM Hungary Zrt., a KRW 53.6bn European cathode plant design & procurement contract — 68.15% of recent revenue. Structured with progress-based milestone billing (75% interim), securing cash flow through March 2026.

1.2. Sustainable competitive advantage

Official fact: Non-ferrous catalyst eliminates iron/nickel/chromium impurities (fire/explosion triggers). While peers use 1960s-era batch reactors, JEIO has internalized continuous CVD. Result: CAPEX per 1,000 t is ~KRW 30bn vs ~KRW 50bn at peers — overwhelming cost advantage.

Official fact: Electronic materials R&D intensity is 33.8% of segment revenue; 28% of headcount in R&D. 65 patents filed / 45 registered domestically & abroad.

Interpretation: Conductive additive is only 1–2% of cell cost, yet it drives energy density, charging speed, and fire safety. Cell makers have very weak economic incentive to switch to unverified low-cost Chinese material — that's the real source of JEIO's pricing power.

2. Downstream megatrends

2.1. Silicon anode and SWCNT structural shortage

Silicon stores 10x more energy than graphite theoretically, but expands 300~400% during charge/discharge. The only material that physically restrains this expansion and reweaves the broken conductive network is SWCNT, thanks to extreme flexibility at 1.5~3.0nm diameter and tensile strength dozens of times that of steel.

Official fact: Russia's OCSiAl holds 90%+ of the global SWCNT market. Russia-Ukraine war and IRA-driven supply-chain bifurcation are pushing global cell makers to find dual-vendor partners. JENOTUBE 3A is effectively the only commercial alternative.

2.2. Isu Petasys acquisition and AI / semiconductor fusion

Official fact: Isu Petasys, a core Isu Group subsidiary, is acquiring ~30% of JEIO (deal closing expected March 2025). Isu Petasys oligopolistically supplies high-layer multilayer boards (MLB) and 800GB next-gen switch boards to Nvidia, Google, DeepSeek and other global big tech.

Official fact: SK Hynix alone is spending KRW 4.7tn on EUV equipment through 2025. JEIO leads a government-backed 'EUV pellicle CNT membrane manufacturing technology' project, targeting 97%+ transmittance pellicle membranes.

Interpretation: The Isu Petasys deal is less an M&A than the securing of a captive downstream market. AI MLB thermal/conductive material and EUV pellicle become the two legs — effectively a backdoor entry into the highest-barrier semiconductor / AI hardware value chain.

2.3. Risks

1. Prolonged EV chasm → delayed utilization ramp at the 2,000 t Ansan facility, short-term fixed-cost drag.
2. M&A PMI risk — minority shareholder backlash during Isu Petasys's KRW 550bn rights offering created short-term noise. Slow synergy realization could erode the valuation premium.

3. Q · P · C decomposition of 2025 prelim results

Official fact (consolidated prelim, 2026-02-13 disclosure): Revenue KRW 55.17bn (−33.4% YoY), operating loss KRW 4.23bn (loss narrowed 22.4%), net loss KRW 2.38bn (loss narrowed 73.0%, from −8.87bn to −2.38bn).

3.1. Q — structural step-up in volumes

• From 4Q25, Samsung SDI began taking MWCNT (JENOTUBE 10B/10S) shipments — loaded onto premium prismatic and next-gen pouch lineups.
• New Japanese cell maker shipments began at year-end. Test samples and pilot mass-production volumes to electronics/PCB partners like Isu Petasys started shipping.
• Ansan plant 2 first 1,000 t completed in early 2024; second 1,000 t expansion targeted for completion in Nov 2026 — total KRW 70bn capex (63.5% of equity).

3.2. P — high-value mix upgrade

Even amid the lithium price collapse and cathode price slump, JEIO defended P because: while the per-kg price is much higher than carbon black, loading per cell is cut to 1/5, so cell makers' all-in cost actually drops. On top of this, the MW → TW → SW mix upgrade drives a structurally rising blended ASP over 2–3 years.

3.3. C — cost innovation

Utilization ramp at Ansan plant 2 sharply reduced per-unit fixed-cost burden (scale economies). Continuous CVD yields stabilized through repeated references — these were the lead actors in the 22% op-loss narrowing and 73% net loss compression.

3.4. Forward cash flow (2026~2028F)

• 2026 (turnaround year): Full-year flow-through of Samsung SDI / Japanese cell maker MWCNT; new revenue stream from AI board thermal/conductive materials via Isu Petasys. 2,000 t CAPA utilization 60~70%+ → clear OP break-even.
• 2027~2028 (quantum jump): Silicon anode adoption surge drives high-ASP SWCNT demand. SWCNT capacity expanded from sub-1 t/yr to tens of t/yr. With EUV pellicle membrane commercialization, plausible path to KRW 200bn revenue, 20%+ OPM cash cow.

4. Financial health and capital allocation

4.1. Downside protection

Official fact: 3Q25 (31st FY) current assets KRW 54.8bn, total liabilities KRW 40.1bn, total assets KRW 214.6bn — effectively net cash. Isu Petasys deal injects ~KRW 142bn; combined with unused portion of the KRW 50bn EB pre-issued in May 2024, total deployable capital is ~KRW 200bn.

4.2. ROIC-focused capital allocation

Official fact: Founder/CEO Kang Deuk-joo retains ~15% after closing, staying as CTO/R&D head. The KRW 200bn is deployed into (1) SWCNT capacity pre-expansion, and (2) EUV pellicle CNT membrane / AI PCB specialty equipment.

5. Valuation and conclusion

5.1. SOTP valuation

The market still values JEIO at battery-sector multiples (PER 15~20x). A segment-by-segment SOTP makes more sense.

5.2. Catalysts to close the mispricing

1. March 2025 Isu Petasys M&A deal closing — KRW 142bn capital paid in, overhang dissolved.
2. Isu Petasys AI PCB specialty material adoption or EUV pellicle membrane localization news — the moment of full re-rating into 'AI/semi leader'.
3. Samsung SDI volume guidance upgrade — 4Q25 starting volumes annualized for 2026 producing a KRW 120bn+ consensus print.

5.3. Final view