[Click eStock] "EcoPro BM, Anode Material Business Competitiveness to Improve This Year's Performance"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities stated on the 19th that considering Ecopro BM's competitiveness in the cathode material business, its performance growth this year is expected to be significant, maintaining a buy investment opinion and a target stock price of 250,000 KRW.

The company's sales this year are projected to increase by 62% from the previous year to 1.39 trillion KRW, and operating profit is expected to rise by 89% to 103.5 billion KRW. A strong quantitative growth centered on high-nickel cathode materials is anticipated.

Battery companies are expected to accelerate the adoption of high-nickel cathode materials with high nickel content to secure a leading position in the high-density battery business. In fact, Ecopro BM's clients, including Samsung SDI and SK Innovation, plan to expand battery production using high-nickel cathode materials.

Go Jung-woo, a researcher at NH Investment & Securities, said, "We believe that global leading battery companies and the high exposure to the high-nickel cathode material business will benefit from the growth of the battery industry," adding, "If the company's newly developed material, high-manganese cathode material business, becomes visible in the future, the growth outlook will be further upgraded."

High-manganese cathode material is a material that can reduce battery costs due to its low nickel and cobalt content. Volkswagen has also announced plans to apply high-manganese cathode materials to affordable electric vehicle models with high price sensitivity.

First-quarter performance this year is estimated to show sales of 263.7 billion KRW, a 7% increase from the previous quarter, and operating profit of 17.1 billion KRW, a 19% increase. Although the burden of transportation costs due to rising freight charges is expected to fall short of previous forecasts, the effect of price increases due to rising metal prices is expected to have positively influenced the performance.