[Featured Stocks] Samsung SDI and Ecopro BM Both Hit 52-Week Highs Following Joint Venture Establishment

[Asia Economy Reporter Minji Lee] Samsung SDI and EcoPro BM both hit new 52-week highs during trading following news of their joint venture establishment.

At 1:38 PM on the 11th in the KOSPI market, Samsung SDI was trading at 340,500 KRW, up 5.91% from the previous session. During the day, Samsung SDI reached as high as 351,000 KRW, setting a new 52-week high. Samsung SDI Preferred shares were also trading at 180,000 KRW, up 12.5% from the previous session.

At the same time in the KOSDAQ market, EcoPro BM was trading at 86,000 KRW, up 10.26% from the previous session. EcoPro BM reached as high as 92,100 KRW during the day, surpassing its previous high.

The day before, the two companies announced the establishment of a joint venture named 'EcoPro EM' to produce next-generation battery materials. The shareholding ratio is EcoPro BM 60%, Samsung SDI 40%. Accordingly, EcoPro BM and Samsung SDI will invest 72 billion KRW and 48 billion KRW respectively in the new company by 2021.

Jang Jeong-hoon, a researcher at Samsung Securities, explained, “Through the joint venture, Samsung SDI will be able to stably procure high-nickel cathode materials domestically,” and added, “EcoPro BM will be able to increase sales volume of high-nickel cathode materials for EVs.”