[Special Stock] Cheonbo Rises on Growth Expectations from Expansion

[Asia Economy Reporter Song Hwajeong] Cheonbo is showing a strong gain of over 4% amid growth expectations following large-scale expansion.

As of 9:54 AM on the 19th, Cheonbo was trading at 241,000 KRW, up 11,300 KRW (4.92%) from the previous day.

On this day, Daishin Securities raised the target price for Cheonbo by 42% compared to the previous estimate, reflecting the announcement of large-scale expansion due to high demand growth and the increased valuation of Korea's secondary battery materials sector. Last month, Cheonbo signed a Memorandum of Understanding (MOU) to build a secondary battery materials factory in the Saemangeum Industrial Complex. They plan to invest approximately 500 billion KRW by 2026 to secure an annual production capacity of 20,000 tons of LiFSI. Sangwon Han, a researcher at Daishin Securities, stated, "The production capacity of secondary battery materials, which was only 1,560 tons annually last year, is expected to surge to 4,000 tons this year, 12,000 tons in 2023, and 27,000 tons in 2026," adding, "Accordingly, sales from the secondary battery materials business are expected to approach 1 trillion KRW by 2026."