[Click eStock] "EcoPro BM, 2Q Operating Profit Exceeds Expectations"…Target Price Up

[Asia Economy Reporter Lee Jung-yoon] Daishin Securities maintained a buy rating on EcoPro BM on the 12th, stating that the company's operating profit for the second quarter of this year is expected to exceed market expectations, and raised the target price from the previous 152,900 KRW to 155,000 KRW.

EcoPro BM's sales for the second quarter of this year are projected to reach 1 trillion KRW, a 228% increase compared to the same period last year, and operating profit is expected to increase by 163% to 76.3 billion KRW. The second quarter operating profit is forecasted to surpass market expectations by 13.9%.

Jeon Chang-hyun, a researcher at Daishin Securities, explained, "Sales increased by 54% compared to the previous quarter due to robust high-nickel demand, increased shipments, and the effects of price and exchange rate increases following metal price rises." He added, "The EV segment recorded sales of 546.2 billion KRW, driving overall growth, and its sales proportion is expected to expand to 54%." He continued, "Profitability is expected to improve and normalize to an OPM (operating profit margin) level of 7.5% due to the restart of CAM4, which was halted by a fire, and the full operation of CAM6."

In May and June, nickel and cobalt prices shifted downward, leading to the possibility of a slight decline in metal-linked prices in the second half of the year. Researcher Jeon stated, "This is more a matter of response than prediction, and at this point, it is necessary to be cautious about excessive assumptions of price declines." He added, "Due to the nature of the processing margin business, the impact of price declines on profits is limited, and focus should be placed on the continued strong high-nickel demand expected in the second half."

He further noted, "With expanded shipments centered on major customers' EVs, early operation of CAM5N in the fourth quarter of this year is planned to meet demand, and record-high sales and profits each quarter are expected to exceed market expectations." He added, "Mid- to long-term capacity expansion plans are also underway, and securing overseas capacity in Europe and North America is expected to timely meet local demand."

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