EcoPro BM Roars Again...Surprise Earnings Lead to Growth Potential Reassessment

EcoPro and EcoPro BM on the Rise... Cementing Leadership with 'Surprise Earnings'

[Asia Economy Reporter Minwoo Lee] EcoPro BM's stock price is once again showing an upward trend. This is attributed to the surprise earnings that significantly exceeded market expectations and the reevaluation of its future growth potential.

As of 11:14 AM on the 4th, EcoPro BM's stock price recorded 446,500 KRW, up 5.06% compared to the previous day. Following a 5.20% rise the day before, the upward momentum continues. The parent company, EcoPro, saw an even steeper increase. After closing up 15.71% the previous day, it is showing a rise of over 6% this morning. This contrasts with the KOSDAQ's 0.44% decline the previous day. Along with this, foreign investors' funds also poured in. EcoPro BM (47.7 billion KRW) and EcoPro (44.6 billion KRW) ranked first and second in foreign net purchases the previous day.

This is interpreted as a result of solidifying its position as the 'leader' in secondary battery materials through earnings that exceeded expectations. EcoPro BM recorded consolidated sales of 408.1 billion KRW and operating profit of 40.7 billion KRW in the third quarter of this year. These figures represent increases of 63.09% and 130.42%, respectively, compared to the same period last year. The market consensus was also far surpassed, with sales exceeding by 6.13% and operating profit by a remarkable 13.61%. This marks another record for the highest quarterly performance.

Jonghyung Lee, a researcher at Kiwoom Securities, explained, "Despite concerns over vehicle semiconductor supply shortages, mass production of NCM (Nickel-Cobalt-Manganese) products began, resulting in EV-related sales of 172.8 billion KRW, up 76% year-on-year and 43% quarter-on-quarter." He added, "The operating profit margin also hit a record high of 10.0%, maintaining outstanding profitability among domestic and international cathode material companies."

The policy to respond to adverse factors also gained market trust. After signing a long-term cathode material supply contract worth 10 trillion KRW with SK Innovation in September, the sharply rising stock price began to show some weakness from last month. This was due to concerns over electric vehicle production disruptions caused by vehicle semiconductor supply shortages and Tesla's announcement to expand the adoption of lithium iron phosphate (LFP) cathode materials. In response, EcoPro BM plans to address low-grade products with currently developing manganese-rich (Mn-rich) and cobalt-free (Co-free) cathode materials, while continuing mid- to long-term high growth with premium products focused on high-nickel (Hi-Ni) series products.

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