[Click eStock] "E&Cooper, Strengthening Value Chain through Water Treatment Platform Establishment"

[Asia Economy Reporter Hyungsoo Park] Hanyang Securities evaluated on the 9th that E& Corporation is strengthening its value chain by building a water treatment platform. No investment opinion or target price was provided.

Minju Park, a researcher at Hanyang Securities, explained, "Starting with Hanseong Cleantec, which operates in the water treatment EPC business, they have subsidiaries in wastewater and waste treatment companies as well as water treatment O&M companies, enabling them to provide integrated industrial water treatment solutions." She added, "Full-scale performance visibility through subsidiary consolidation is expected."

Since the change of the largest shareholder this year, E& Corporation has reorganized some of its existing businesses and acquired water treatment companies. Researcher Park emphasized, "By acquiring E& Water Solution and E Clean Water, it has become the company with the largest amount of wastewater and liquid designated waste treatment permits in Korea."

She also analyzed, "Since it is a business difficult for new entrants, it will have strong competitiveness. Unlike competitors, it can simultaneously treat wastewater and waste, eliminating the need for outsourcing, which also results in good profitability."

She expressed expectations, "The recently acquired Dangjin site covers nearly 10,000 pyeong, and since the locations are close to each other, it can be effectively used for additional facility investments and waste treatment such as incineration."

It is forecasted that the subsidiaries will grow domestically and internationally based on their technological capabilities. Researcher Park predicted, "Due to global ESG issues and strengthened environmental regulations, demand for water treatment facilities will continue to increase, and performance improvement will follow."

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