[Click eStock] "EcoPro BM, Leading Anode Material Stock... Expected Earnings Growth"

[Asia Economy Reporter Ji Yeon-jin] IBK Investment & Securities announced on the 18th that it is raising the target price of Ecopro BM to 570,000 KRW, expecting improved production capacity as the possibility of investment in North America increases due to large-scale orders from SK Innovation.

Jeon Chang-hyung, a researcher at IBK Investment & Securities, stated, "Ecopro BM's cathode material production capacity is expected to expand from 59,000 tons this year to 163,000 tons in 2023 and 290,000 tons in 2025, and if North American investment plans emerge, it is highly likely to increase further." He emphasized, "Although the recently somewhat elevated stock price is a burden, Ecopro BM remains the leading cathode material stock with overwhelmingly higher profitability compared to competitors, long-term earnings visibility, high-nickel technology, and production capacity."

Ecopro BM's third-quarter sales are estimated to increase by 56% year-on-year to 389 billion KRW, and operating profit is expected to grow by 113% to 38 billion KRW. Since the second quarter of this year, it has been supplying NCA to Samsung SDI GEN5, and in the third quarter, sales of high-nickel cathode materials such as NCM half-half to SK Innovation are expected to increase, leading to revenue growth and profitability improvement. The proportion of premium high-nickel products is expected to expand to 10% of total sales this year.