[Click eStock] "Cheonbo, Potential for Earnings Growth Due to Expansion and Increased Battery Demand"

[Asia Economy Reporter Eunmo Koo] Shinhan Financial Investment forecasted that Cheonbo’s performance growth is certain due to the expansion of production facilities and increased battery demand. The investment opinion was maintained as ‘Buy,’ and the target price was raised from the previous 140,000 KRW to 200,000 KRW.

On the 28th, Shinhan Financial Investment estimated that Cheonbo’s Q3 sales this year would be 46.7 billion KRW, a 35% increase compared to the same period last year, and operating profit would be 8.7 billion KRW, a 42% increase. Analyst Kangho Oh of Shinhan Financial Investment explained in the report, “A performance rebound is expected due to the recovery of customer demand (secondary batteries, electronic materials),” adding, “Battery sales are expected to increase by 110% year-on-year to 26.5 billion KRW, and by product, operation started from Q3 with the completion of P and F electrolyte capacity expansion.” The operating profit margin was estimated to increase by 0.9 percentage points to 18.7%.

This is evaluated as a year in which a further leap is possible due to the expansion announcement. Analyst Oh predicted, “Additionally, with increased battery demand and product portfolio expansion through technological development, performance growth over the next three years is certain.” Looking at the expansion scale by product, P (LiPO2F2) is planned to expand from 360 tons last year to 540 tons this year and up to 1,500 tons next year. Analyst Oh said, “With the expansion of customer demand, further expansion can be expected in the future,” and “Sales growth will accelerate further depending on the timing and scale of the expansion.”

The investment opinion was maintained as ‘Buy,’ and the target price was raised from the previous 140,000 KRW to 200,000 KRW. Analyst Oh explained, “It is a valuation rise phase for small companies in the secondary battery sector, and there is an expectation of profitability recovery in the electronic materials sector in the second half,” adding, “A rebound after the Q2 performance bottom is certain.”

This content was produced with the assistance of AI translation services.