[Asia Economy Reporter Hyungsoo Park] Ecoplastic is showing strong performance. The construction of a new plant near Georgia, where Hyundai Motor's dedicated electric vehicle factory is being built, is expected to significantly increase sales, according to securities firm analysis, which appears to be influencing the stock price.
As of 9:32 AM on the 5th, Ecoplastic is trading at 3,080 KRW, up 9.22% from the previous trading day.
Hanwha Investment & Securities described Ecoplastic as the largest domestic manufacturer specializing in automotive plastic parts and explained that it is preparing to start construction of a new plant near Georgia, where Hyundai Motor's dedicated electric vehicle factory is being built.
Researcher Yongho Kim of Hanwha Investment & Securities said, "It is estimated that the site selection stage is currently underway," and analyzed, "Hyundai Motor plans to start operating the electric vehicle dedicated factory in the first half of 2025, and Ecoplastic is also expected to begin mass production accordingly."
He added, "With the U.S. government implementing the IRA, which provides subsidies only for electric vehicles produced in North America, Hyundai Motor's new plant operation could be moved up to the second half of 2024."
Furthermore, he emphasized, "The timing of new sales generation for Ecoplastic could also be accelerated," and noted, "It is understood that Ecoplastic has been selected as the sole supplier for bumpers."
Researcher Kim explained, "Considering the high ASP of electric vehicle parts, business expansion in the U.S. is expected to become a new growth engine," and added, "They are targeting approximately 450 billion KRW in sales from this plant alone by 2029."
He also pointed out, "It is noteworthy that the likelihood of smooth orders for other finished vehicle volumes is high due to local market entry and increased production capacity in the U.S."
Ecoplastic's major customers include Hyundai Motor and Kia. Its main consolidated subsidiaries are AIA and Komos, which operate similar businesses. Ecoplastic holds a 55.3% market share for bumpers within Hyundai Motor, ranking first. Products such as consoles and wheel covers also maintain high market shares within its customers.
Researcher Kim added, "As the importance of vehicle lightweighting increases, the use of plastics in mobility is expected to continue growing," and said, "With the emergence of new concept mobility where lightweighting will be key?not only electric vehicles but also Purpose Built Vehicles (PBV) and Urban Air Mobility (UAM)?there is a high possibility that even exterior panels will be replaced with plastics."
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