"Biggest Gain Among Companies with Market Cap Over $10 Billion"
"Founder Allegations Fail to Tarnish Stock"
Domestic secondary battery leader 'Ecopro' has caught the attention of US media 'Bloomberg' due to its surge. According to the outlet, Ecopro is one of the best-performing stocks worldwide this year. Bloomberg noted that Ecopro's remarkable growth continued despite the CEO's detention, particularly highlighting the role of retail investors.
On the 6th (local time), Bloomberg reported, "South Korea's battery material manufacturer Ecopro has risen 919% this year," adding, "It is the largest increase among companies with a market capitalization exceeding $10 billion."
The media pointed out that this stock price surge occurred while Chairman and CEO Lee Dong-chae was detained, stating, "Even the founder's criminal charges could not tarnish the stock of a company recording its best performance."
Bloomberg highlighted the surge in stock price of EcoPro, an environmental industry company listed on KOSDAQ. [Image source=Bloomberg]
Lee, who was indicted for making over 1 billion KRW in profits through insider trading, was sentenced to two years in prison in the appellate court on the 18th of last month.
Bloomberg added that the rise in Ecopro's stock price has brought the Lee family's wealth close to $4.9 billion.
In particular, the media emphasized the significant role of retail investors behind the surge in Ecopro's stock, even using the term 'Retail Army' in the article.
However, it also conveyed concerns that the market could overheat due to the steep growth and influx of speculative bets, which could lead to substantial losses.
Ecopro's sales in the second quarter of this year grew by 64%, reaching 2 trillion KRW, but operating profit increased by less than 1% to about 170.3 billion KRW. The media analyzed, "Rising raw material prices and exchange rate fluctuations affected the profitability of battery cathode materials."
Ecopro, established in 1998, is an environmental technology company specializing in air pollution prevention and post-treatment technologies, with cathode materials for batteries as a major business. The core cathode material business is handled by its affiliate Ecopro BM.
The previous day, Ecopro's stock closed at 1,050,000 KRW, and Ecopro BM closed at 301,000 KRW.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
