[Click eStock] "BGF Eco Materials, Benefiting from Vehicle Lightweighting"

ResearchAlum stated on the 3rd that the demand for engineering plastics (EP) will continue to increase due to the demand for vehicle lightweighting, and expected BGF Eco Materials to benefit. They newly presented a target stock price of 7,200 won.

Choi Seonghwan, a researcher at ResearchAlum, explained, "The penetration rate of electric vehicles in the automotive market is rapidly increasing," adding, "According to the International Energy Agency (IEA), the sales volume of electric vehicles in 2023 reached 14 million units, accounting for about 18% of total vehicle sales."

He continued, "This year, electric vehicle sales are expected to reach about 17 million units," adding, "which will account for about 20% of total vehicle sales."

He emphasized, "Electric vehicles are approximately 400 kg heavier than internal combustion engine models with the same specifications due to battery issues," and added, "High-performance polymer materials have effects such as vehicle lightweighting, improved fuel consumption efficiency, and cost reduction." Furthermore, he stated, "The EP produced by BGF Eco Materials is used in eco-friendly vehicle parts such as electric vehicle battery cases and radiator tanks."

Researcher Choi analyzed, "Starting with China, large oil companies in the United States and the Middle East have begun expanding plastic factories," and added, "We expect profitability improvement for BGF Eco Materials due to the decline in raw material prices."