Confirms Strong Ties with Major South Korean Battery Materials Customer

Research evidence excerpt

Confirms Strong Ties with Major South Korean Battery Materials Customer

Update

July 10, 2026 01:57 PM GMT

Morgan Stanley MUFG Securities Co., Ltd.+MZEON (4205) | Japan Takato Watabe

Equity Analyst

Confirms Strong Ties with Takato.Watabe@morganstanleymufg.comRyoichi Watanabe +81 3 6836-5436

Ryoichi.Watanabe@morganstanleymufg.com +81 3 6836-8929

Major South Korean Battery Kayoko Shoji

Research Associate

Kayoko.Shoji@morganstanleymufg.com +81 3 6836-5437

Materials Customer Kano Fujita

Kano.Fujita@morganstanleymufg.com +81 3 6836-8932

In South Korea, we met with the management teams of ZEON

and its major battery materials customer. The meeting

confirmed strong ties between the two.

Confirmed medium-term earnings potential in battery materials: On Jul 10, we

met in South Korea with ZEON management and the battery-related management ZEON (4205.T, 4205 JT)

team of major battery materials customer Samsung SDI (covered by Young Suk Electronic Chemicals | Japan

Shin). We saw it as a productive meeting that confirmed strong ties between the Stock Rating Overweight

Industry View In-Line

two companies and medium-term earnings growth potential in battery materials, Price target ¥3,000

centering on ESS. Up/downside to price target (%) 33

Shr price, close (Jul 10, 2026) ¥2,249

Mkt cap, curr, basic (bn) ¥430.3

Samsung SDI's battery business strategy: Samsung SDI gave a presentation titled

Div yld (03/27e) (%) 3.5

"Innovative Battery Technologies in Emerging Applications". Regarding the market

Fiscal Year Ending 03/26 03/27e 03/28e 03/29e

encompassing batteries, the firm outlined its expectation for demand to expand

Revenue, net (¥bn) 412.0 420.0 424.0 433.0

beyond traditional EV and smartphone applications and grow sharply for ESS Operating profit (¥bn)* 36.4 41.0 46.0 50.0