[Click eStock] "Cheonbo, Continued Poor Performance This Year... Target Price ↓"

Hyundai Motor Securities forecasted on the 27th that Cheonbo's poor performance will continue this year. The investment opinion 'Buy' was maintained, but the target price was lowered to 150,000 KRW.

Kang Dong-jin, a researcher at Hyundai Motor Securities, stated, "The impact of performance slowdown due to oversupply of electrolytes in China and price declines is expected to persist at least until 2023," adding, "The operation of the Saemangeum plant and the turnaround to profitability will be momentum."

In May and June, Cheonbo experienced accidents at the Cheonbo BLS Gunsan plant, where harmful substances chlorine and chloroethylene carbonate leaked. Just one month later, in July, two consecutive fatal accidents occurred. This delayed the operation of the new plant.

However, Researcher Kang predicted that with the plant starting operations in 2024, sales to the Americas and Europe will increase, making the turnaround visible. The new plant applied a new process for P-electrolyte that does not use LiPF6, and for F-electrolyte, it introduced a process that fully recycles byproducts and can reduce manufacturing costs by more than 50%.

Researcher Kang diagnosed, "The cost of P-electrolyte is expected to decrease significantly, and it is anticipated to minimize the impact of raw material price fluctuations." Regarding F-electrolyte, he analyzed, "Its usage will increase as it greatly contributes to battery performance improvements such as lifespan, charge-discharge speed at low temperatures, and high-temperature cycle life."

Researcher Kang also analyzed, "Although the overseas regulatory body (FEoC) regulations for electrolytes have not yet been finalized, if electrolytes are supplied from FEoC starting in 2025, tax credit benefits will not be available, so Cheonbo is expected to benefit."