[Featured Stock] Eco&Dream Expects 500 Billion KRW in Precursor Sales... Exclusive Supplier of Secondary Battery Precursors

Eco&Dream is showing strong performance. It appears that securities firms' analysis, which suggests that the company will benefit from the implementation of the Critical Raw Materials Act (CRMA) in Europe, is influencing the stock price.

As of 11:10 AM on the 15th, Eco&Dream is trading at 34,200 KRW, up 13.25% from the previous day.

Kim Doohyun, a researcher at Hana Securities, explained, "The CRMA is a policy reflecting the European Union's (EU) determination to reduce import dependence on critical mineral raw materials and strengthen supply chains within Europe."

He added, "There is a need for European production of cathode materials, which account for the largest portion (45%) of battery cell costs," and noted, "Yumicoa, a cathode material company, is expanding its factory in Poland."

He emphasized, "The importance of precursors, which account for 60% of the cathode material cost, will increase," and stated, "Yumicoa previously procured a significant portion of precursors from China, but after the supply chain restructuring through the CRMA, Eco&Dream is expected to benefit."

Researcher Kim explained, "Eco&Dream signed a 5-year joint development JDA with Yumicoa in January last year to co-develop next-generation cathode materials," and added, "They agreed to exclusively supply related products." He continued, "As the proportion of high-nickel batteries increases in secondary batteries, demand for small particle size precursors rises to improve density," emphasizing, "Eco&Dream is the only company in Korea capable of mass-producing precursors with particle sizes below 5㎛."

Kim said, "They have completed the construction and commissioning of a 5,000-ton capacity facility," and added, "They are also pursuing an additional 20,000-ton expansion through a second plant." He further noted, "By 2025, production capacity will exceed 25,000 tons," and "Based on a precursor price of 20,000 KRW/kg, the annualized sales revenue in 2025 is expected to be 500 billion KRW."

Eco&Dream is estimated to achieve sales of 135.1 billion KRW and operating profit of 10.8 billion KRW this year, representing increases of 123.3% and 201.2%, respectively, compared to last year.