[Click eStock] "EcoPro BM Continues Deficit in Second Half... Target Price ↓"

On the 4th, Kiwoom Securities maintained its investment rating of 'Market Perform' for EcoPro BM, stating that operating losses are expected to continue in the second half of the year, and lowered the target price to 200,000 KRW.

Junsoo Kwon, a researcher at Kiwoom Securities, stated, "This year, sales are expected to sharply decline by 60% compared to the previous year to 2.7634 trillion KRW, with an operating loss of 52.8 billion KRW, turning to a deficit."

Researcher Kwon explained, "Losses will continue until the fourth quarter of this year," adding, "After the fourth quarter, with the completion of inventory adjustments by major clients and the initial volume effect from the start of operations at the new North American plant, gradual performance recovery is expected from next year."

From this year's earnings announcement, it was confirmed that demand for E/V power tools is sluggish, but demand for cathode materials for ESS remains solid. It was also confirmed that the company is considering slowing down the mid-to-long-term (710,000 tons by 2027) CAPA expansion, including postponing the CAM9 expansion schedule.

Researcher Kwon assessed, "Through this week's Eco-Friendly Day event, specific mid-to-long-term plans and synergies among group companies are expected to be emphasized," and added, "Reflecting changes in earnings estimates, the target price is lowered to 200,000 KRW."