[Click e-Stock] "Ecopro BM Has Many Upward Drivers, but Europe Remains a Variable"

On April 23, Korea Investment & Securities projected an improvement in the profitability of Ecopro BM. However, the firm maintained a neutral investment rating, citing the decline in the European market share of its main customer, Samsung SDI, as a variable.

Korea Investment & Securities forecast Ecopro BM's 2025 revenue at 3.07 trillion won, up 10.8% year-on-year, and EBITDA at 246.8 billion won, up 221.7% from the previous year.

Kim Yerim, a researcher at Korea Investment & Securities, assessed that Ecopro BM has several upward momentum factors.

She stated, "Ecopro BM is a domestic cathode material company that has proactively secured a production base in Europe. Through its Hungarian plant, the company is equipped to respond to local regulatory requirements and avoid tariff risks, while also enhancing its ability to meet the needs of battery and finished vehicle customers." She added, "As GM and Hyundai Motor are starting mass production of prismatic batteries in partnership with Samsung SDI, the potential for Ecopro BM to benefit is increasing."

However, she pointed out the decline in the European market share of its main customer, Samsung SDI, as a variable.

Kim noted, "This year, shipment volume and sales are expected to recover due to the low base effect from last year, but the magnitude and timing of the recovery remain uncertain. The European market share of our main customer, Samsung SDI, is actually declining. In addition, the growth of cathode materials for ESS is being limited by the increased penetration of LFP, which is amplifying uncertainty."

She continued, "Unless there is a visible improvement in performance, a rebound in the stock price may be limited. While the company's growth drivers remain valid in the mid- to long-term, it would be prudent to respond after confirming a recovery in Samsung SDI's European market share and a meaningful rebound in sales to Europe."