[Click eStock] "EcoPro BM to Show Results by 2023"

Steady Expansion of Production Capacity... Market Leader Status Solidified Amid Positive Market Conditions

[Asia Economy Reporter Minwoo Lee] Ecopro BM is expected to continue its overwhelming growth trend until 2025, increasing its presence in the secondary battery materials industry.

On the 13th, Sangsangin Securities maintained a 'Buy' investment rating based on this background and raised the target price by 53.5% to 660,000 KRW. The closing price on the previous trading day was 519,300 KRW.

Ecopro BM already posted Q3 sales of 408.1 billion KRW and operating profit of 40.7 billion KRW this year, exceeding market consensus estimates by 6% and 14%, respectively. A steep growth trend is expected to continue. As the global market expands, the company plans to invest a total of 2.8 trillion KRW in North America and Europe by 2026 to secure a cathode material production capacity of 480,000 tons, enough for 6 million electric vehicles.

Additionally, with the increased operating rate of Line 3 at the 5th factory (CAM5), which began mass production in the first half of the year, fixed cost reduction effects are expected to continue in the second half, steadily improving profitability. The rising nickel content in electric vehicle cathode materials is also a positive factor, as demand for high-nickel cathode materials continues to grow.

Researcher Jongwon Lee of Sangsangin Securities stated, "The compound annual growth rate (CAGR) of the global electric vehicle market is expected to be around 30% until 2025, with electric vehicle adoption in Europe and the U.S. increasing by more than 50% compared to 2019 this year. The positive impact of economies of scale on performance will be continuously reflected in the stock price until 2023."

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