EcoPro BM Regains No.1 Market Cap, Will Its Throne Become More Secure?

Rising to 1st Place After Three Months, Surpassing Celltrion Healthcare
Expected to Cement Position as KOSDAQ Leader Fueled by Expanding Secondary Battery Investor Sentiment

[Asia Economy Reporter Minji Lee] Celltrion Healthcare has stepped down from the top spot in KOSDAQ market capitalization. Its position was taken over by EcoPro BM, marking a shift in the leading KOSDAQ stock to a secondary battery company. With a bright outlook ahead, EcoPro BM is expected to firmly establish itself as the KOSDAQ market leader.

According to the Korea Exchange on the 7th, as of the 6th, EcoPro BM's market capitalization stood at 9.7133 trillion KRW, which is 55.5 billion KRW more than Celltrion Healthcare's market cap of 9.6578 trillion KRW. This marks EcoPro BM's return to the top market cap position after three months. Over the past month, EcoPro BM's stock price rose by 11.85%, while Celltrion Healthcare's fell by 2.3%.

The rise in EcoPro BM's stock price is attributed to improved investor sentiment toward the secondary battery industry. Earlier this year, investment sentiment for secondary batteries was poor due to the rapid changes in the U.S. Federal Reserve's monetary policy and the Russia-Ukraine war. However, as the perception spread that stock prices had fallen excessively compared to earnings, investors have been flocking in. Looking at the overall KOSDAQ market cap rankings, secondary battery-related stocks like L&F (8.2997 trillion KRW) are closely trailing behind Celltrion Healthcare, and Cheonbo (3.291 trillion KRW) maintains its 8th place in market capitalization.

Positive forecasts for Tesla's stock price have also been favorable for the secondary battery industry. Domestic secondary battery stocks typically follow Tesla's stock price trends. Tesla's stock surged 29.98% over the past month, despite severe production disruptions caused by semiconductor supply shortages. This rise was driven by Tesla's success in optimizing through chip and software integration, which helped it avoid concerns over semiconductor shortages. Tesla's vehicle deliveries in Q1 are estimated to have increased by 68% year-over-year. Hyunsoo Kim, a researcher at Hana Financial Investment, said, “Although the shortage of automotive semiconductors is expected to persist in Q2, Tesla will continue its growth trend in Q2 as well,” adding, “Tesla's supply chain performance and stock price trends will also remain robust.”

Capital increases through paid and free stock offerings are also expected to support EcoPro BM's stock price for the time being. The company announced a paid capital increase worth 500 billion KRW and a 1-for-3 free stock split the day before. EcoPro BM plans to use the funds raised through the paid capital increase to invest in EcoPro Global to accelerate its overseas expansion. Jaehun Jung, a researcher at DB Financial Investment, analyzed, “The announcement of the paid capital increase marks the start of overseas expansion of 320,000 tons, about 60% of the 550,000-ton production capacity guidance for 2026,” adding, “Since the overseas expansion plan, which the market had been expecting as momentum, has materialized, it will be positive for the stock price.”

Conversely, the possibility of Celltrion Healthcare reclaiming the top spot is low. Despite the resolution of accounting controversies surrounding the Celltrion Group that had been suppressing the stock price, no earnings have been confirmed that meet market expectations. Moreover, the forecast for operating profit in Q1, traditionally a slow season, is declining, which is negative. The expected operating profit for Q1 is estimated at 67.6 billion KRW, but Samsung Securities projects a lower 38 billion KRW, based on the judgment that export volumes will decrease due to inventory stockpiling of some products.

A stock price rebound is also expected to occur only in the second half of the year. Geunhee Seo, a researcher at Samsung Securities, said, “It will be difficult to see sales growth of around 40-50% as in 2019-2020,” adding, “For a stock price turnaround, growth through expanded European sales of Remsima SC and Yuflyma (Humira biosimilar) in the second half and approval momentum for CT-P16 (Avastin biosimilar) in the U.S. and Europe will be necessary.”

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