[Click eStock] "EcoPro Needs Stock Revaluation as an Eco-Friendly Business"

[Asia Economy Reporter Hyunseok Yoo] Kakao Pay Securities analyzed on the 31st that Ecopro is at a point where its stock price needs to be re-evaluated as an eco-friendly business entity rather than just a simple holding company. No investment opinion or target price was presented.

Ecopro is well known as the parent company of Ecopro BM, a battery cathode material manufacturer. Researcher Seungcheol Lee of Kakao Pay Securities said about Ecopro, "It is a holding company that controls Ecopro GEM, which operates a precursor business, Ecopro Innovation, which is engaged in lithium processing, and Ecopro CNG, which specializes in recycling," adding, "At the same time, it is an eco-friendly business entity engaged in chemical filters, air pollution prevention, and greenhouse gas-related businesses."

He stated, "Since the COVID-19 pandemic, investors' interest in various eco-friendly businesses such as electric vehicles, solar power, and wind power has increased," and evaluated, "It is a time for investors to consider whether Ecopro is being valued as an eco-friendly company rather than just a simple holding company of Ecopro BM."

He explained, "The market capitalization of Ecopro BM, a subsidiary in which Ecopro holds a 53% stake, is approaching 3.3 trillion KRW, and the value of this stake alone exceeds 1.7 trillion KRW, surpassing Ecopro's current market capitalization," adding, "So far, the holding company's role has only been evaluated thanks to the outstanding performance of its subsidiary, but it is expected that the evaluation of eco-friendly businesses, including battery recycling, will be conducted in the future."

Researcher Lee emphasized the need to focus on the growth potential of Ecopro CNG, a battery recycling subsidiary. Battery recycling is a business that collects and disassembles used batteries to extract and refine raw metals. In Europe and China, where electric vehicle adoption is rapid, companies such as Umicore, Huayou, and GEM are already commercializing this business. He said, "It is necessary to pay attention to the fact that in the second quarter of this year, Ecopro established Ecopro CNG, a specialized battery recycling subsidiary, to actively expand the recycling business," adding, "As the electric vehicle market grows, the importance of securing raw metals is highlighted, and the environmental issues caused by used batteries cannot be overlooked, so the proportion of recycling is expected to continuously increase."

He emphasized, "In the short term, it is expected to enter the recycling business by collecting waste electrodes generated in the processes of major domestic battery companies," and "In the mid to long term, it is expected to evolve into a comprehensive materials company encompassing electrode materials, precursors, and recycling based on electric vehicle used battery recycling."