[Click e-Stock] "EcoPro BM Expected to Benefit from All-Solid-State Batteries for Robots... Target Price Raised"

Target Price Raised from 150,000 Won to 190,000 Won

On January 21, KB Securities announced that it expects EcoPro BM to benefit from the adoption of all-solid-state batteries for robots, and accordingly raised its target price from 150,000 won to 190,000 won. The investment opinion was maintained as 'Buy'.

Lee Changmin, a researcher at KB Securities, explained, "The reason for raising the target price is that we have increased the compound annual growth rate (CAGR) of operating profit for 2027 to 2035 from 24% to 34%, reflecting expectations for growing demand for high-energy-density batteries in autonomous vehicles and humanoid robots."

Expectations for all-solid-state batteries for robots are increasing. EcoPro BM's share price has risen by 13% over the past ten days, which appears to be driven both by expectations of benefiting from the KOSDAQ revitalization policy and by the robot-related optimism that has become the hottest topic in the stock market at the beginning of the year. Lee commented, "While all-solid-state batteries are considered too expensive for automotive B2C (business-to-consumer) products, they could demonstrate their strengths-such as high energy density, excellent safety, and superior charging speed-in B2B (business-to-business) products like humanoid robots, where price sensitivity is relatively lower." He added, "EcoPro BM is preparing for mass production of cathode materials and solid electrolytes for all-solid-state batteries together with its clients, so the company stands to benefit if this market enters full-scale growth."

EcoPro BM's fourth-quarter results for last year are expected to show sales of 553.6 billion won, up 19% year-on-year, and an operating profit of 29.3 billion won, returning to profitability. Lee estimated, "The average selling price of cathode materials in the fourth quarter likely rose slightly compared to the previous quarter due to higher lithium prices and a stronger won-dollar exchange rate." He continued, "On the other hand, cathode material sales volume is expected to decline by 15%. This is because shipments of NCA (nickel-cobalt-aluminum) batteries supplied to Samsung SDI are inevitably sluggish due to Samsung SDI's declining market share in Europe, and shipments of NCM (nickel-cobalt-manganese) batteries supplied to SK On are also expected to be weak due to the expiration of the U.S. Inflation Reduction Act (IRA)." He added, "Fortunately, energy storage systems (ESS) are expected to perform well. With strong demand continuing in the North American market and the seasonal peak effect, results are expected to improve compared to the previous quarter."