[Click e-Stock] "Concerns Over Growing Uncertainty for Ecopro BM in the Second Half of the Year"

On April 30, IBK Investment & Securities lowered its target price for Ecopro BM to 100,000 won, citing a significant increase in uncertainty expected in the second half of the year.

In the first quarter of this year, Ecopro BM recorded sales of 629.8 billion won and an operating profit of 2.3 billion won. Compared to the previous quarter, sales increased by 35.5%, and the company returned to profitability. Sales exceeded the market consensus of 573.5 billion won by 9.8%.

Lee Hyunwook, a researcher at IBK Investment & Securities, explained, "As the operating rate increased, the burden of fixed costs was alleviated, and a reversal of inventory valuation provisions amounting to 30.7 billion won contributed to the return to profitability."

He added, "With the postponement of reciprocal tariffs by the United States, most countries, including Korea, will be subject to higher reciprocal tariff rates starting July 10 this year. There is a high possibility of preemptive demand occurring in the second quarter." He emphasized, "The shipment volume of cathode materials in the second quarter is expected to increase by 16% compared to the previous quarter, and the average selling price is projected to rise by 2% from the first quarter."

However, Lee expressed concerns, stating, "Although strong results are expected in the second quarter due to the possibility of preemptive demand driven by tariff effects, uncertainty is expected to expand significantly in the second half of the year." He also noted, "Ecopro BM had previously suggested that this year's shipment volume of cathode materials would increase by 40% compared to last year, but it now appears likely to fall slightly short of that target."