[Click eStock] "EcoPro BM, Anode Material Production Capacity Up... Target Price 800,000 Won"

[Asia Economy Reporter Ji Yeon-jin] NH Investment & Securities announced on the 5th that it raised the target stock price of Ecopro BM to 800,000 KRW by increasing the estimated operating profit as it upgraded the cathode material production capacity. The current stock price of the company is 455,900 KRW.

Joo Min-woo, a researcher at NH Investment & Securities, said, "The price of cathode materials consists of raw material costs and processing costs, and the margin for cathode material companies comes from processing costs. Processing costs are currently $8 to $9 per kg but are expected to fall to $6 per kg after 2023," adding, "To maintain profitability, cost reduction is essential, and the most effective way to reduce the cost of cathode materials is raw material internalization and recycling. Ecopro Group is the only company that perfectly implements both through its affiliates."

Ecopro Global, which is 100% owned by Ecopro BM, will oversee future overseas expansion. Ecopro Global plans to enter local markets by establishing subsidiaries 'ECO-America' and 'ECOEurope' and intends to list these two subsidiaries on local securities markets in the U.S. and Europe to secure funding for capital expenditures (Capex).

Ecopro BM's cathode materials are expected to be segmented into high-end (NCA/NCM), mid-end (NM64: Co-free), and low-end (OLO). Among these, OLO is a lithium-rich cathode material that drastically reduces the proportions of N and C in existing NCM products, consisting mostly of lithium and manganese. Although OLO is still priced 1.5 times higher than LFP (NCM811 is twice the price of LFP), it has superior energy density, so it is expected not to cede the entire mid-to-low price electric vehicle market to LFP. It is anticipated to secure competitiveness in some mid-to-low price segments.

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