[Click eStock] "EcoPro BM, 1Q Earnings Surge... Target Price Doubled"

NH Investment & Securities raised the target price for EcoPro BM to 310,000 KRW on the 30th. This is more than double the target price of 150,000 KRW presented on January 16, achieved in just two and a half months. EcoPro's stock price closed at 233,000 KRW the previous day, already far exceeding the previous target price.

Last year, EcoPro BM announced plans to build a cathode material production capacity of 710,000 tons by the end of 2027. NH Investment & Securities expects this plan to be accelerated to the end of 2026 as EcoPro BM secures multiple new contracts within the year. Additionally, following the finalization of the U.S. Inflation Reduction Act (IRA) sub-regulations, numerous new expansion plans are expected to be concretized.

EcoPro BM's sales for the first quarter of this year are expected to reach 2.09 trillion KRW, more than triple the amount from the same period last year. Operating profit is also expected to increase about 2.5 times, from 41 billion KRW in the first quarter of last year to 100 billion KRW this year. However, this figure is approximately 11% lower than market expectations.

Juminwoo, a researcher at NH Investment & Securities, said, "Profitability temporarily declined due to inventory adjustments for electric tools and a reduction in spreads related to metal prices," adding, "Profitability is expected to recover from the second quarter as volume increases."