[Click eStock] "EcoPro BM, 3Q Earnings Growth Trend Expected to Continue"

[Asia Economy Reporter Hwang Yoon-joo] Kyobo Securities stated on the 14th that EcoPro BM is expected to deliver solid performance in the third quarter due to stable selling prices and additional shipment volume increases. Accordingly, the investment opinion 'Buy' and the target price were maintained at KRW 190,000 (previously KRW 630,000), reflecting both paid-in and free capital increases.

Choi Bo-young, a researcher at Kyobo Securities, analyzed, "Although there are concerns about selling prices due to raw material price declines among cathode material companies in the second half of the year, EcoPro BM's third-quarter performance is expected to maintain a solid trend."

Researcher Choi explained, "In the past, a gradual reflection of selling prices was based on the average of the metal 3-month market price, and the full impact of the CAM4 plant, which resumed operations from April, is reflected in the third quarter, considering full capacity operation compared to February."

He also evaluated, "In the third quarter, solid demand will continue due to customers' inventory accumulation needs, and shipment volume is expected to increase compared to the second quarter."

[Image source=Yonhap News]

Meanwhile, the background for the strong performance exceeding the second-quarter consensus was attributed to the restart of the CAM4 plant, which had been halted due to a fire. It was also analyzed that the operation of CAM6 had the greatest impact on improving sales and profitability. Additionally, price increases linked to metal prices and exchange rate effects were diagnosed as major factors for the performance improvement.

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