[Featured Stock] Cheonbo Continues Steep Earnings Growth... New High

[Asia Economy Reporter Song Hwajeong] Cheonbo is showing strength amid expectations of continued steep earnings growth. It hit a 52-week high during trading.

As of 9:29 AM on the 12th, Cheonbo was trading at 334,000 KRW, up 14,000 KRW (4.38%) from the previous day. During the session, it rose to 342,000 KRW, setting a new 52-week high. Cheonbo has risen 12.99% since the beginning of this month through the previous day.

Strong third-quarter earnings this year and expectations of continued steep earnings growth appear to be driving the stock price higher. Cheonbo recorded sales of 73.8 billion KRW and operating profit of 11.9 billion KRW in the third quarter of this year. These figures represent increases of 93% and 69%, respectively, compared to the same period last year. Kim Hyunsoo, a researcher at Hana Financial Investment, said, "Thanks to growth in the secondary battery sector, Cheonbo's earnings next year are expected to show steep growth with sales increasing 49% year-on-year to 391.9 billion KRW and operating profit rising 54% to 71.5 billion KRW. In 2023, sales are projected to increase 31% to 512.6 billion KRW, and operating profit to grow 33% to 94.6 billion KRW."

Oh Kangho, a researcher at Shinhan Financial Investment, analyzed, "Among domestic secondary battery companies, profitability improvement is clear and product diversification is positive. The year 2022 is a period when the first phase of expansion investment announced in 2020 is fully reflected, leading to continued earnings growth." Shinhan Financial Investment raised Cheonbo's target stock price by 25% to 400,000 KRW.