[Click eStock] "EcoPro BM with strong 2Q performance, will get better... 3Q to hit record high"

[Asia Economy Reporter Lee Myunghwan] Shinhan Financial Investment announced on the 4th that it maintains a buy rating on Ecopro BM and has raised the target price from the previous 170,487 KRW to 172,500 KRW. This is because Ecopro BM posted strong earnings in the second quarter of this year and is expected to set a new record high again in the third quarter.

Ecopro BM's sales in the second quarter of this year reached 1.19 trillion KRW, a 282.4% increase compared to the same period last year, and operating profit rose 254.3% to 102.9 billion KRW. The operating profit achieved in the second quarter alone is comparable to last year's annual operating profit of 115 billion KRW. Shinhan Financial Investment evaluated that sales of both major product groups, Non-IT and EV (electric vehicle), showed high growth. Non-IT sales reached 535.8 billion KRW, up 214.8% year-on-year, driven by price increases and strong demand. EV sales also increased by 385.5% to 587.5 billion KRW, indicating that sales to major customers are in full swing.

Shinhan Financial Investment forecasted that Ecopro BM's third-quarter performance will break the record high as price increases and volume expansion continue, contrary to concerns. The market initially worried about the possibility of price cuts in the second half and volume stagnation due to 100% capacity operation in the second quarter. Shinhan Financial Investment projects the company's third-quarter sales to increase 240.8% year-on-year to 1.4 trillion KRW, and operating profit to rise 17.4% to 120.8 billion KRW. They analyzed that the price of lithium hydroxide, a key raw material for cathode materials, remains high, and third-quarter selling prices are expected to rise by 10-20% compared to the previous quarter.

Researcher Jung Yongjin of Shinhan Financial Investment said, "Recently, North American automaker GM confirmed large-scale long-term supply contracts with domestic cathode material companies, sending a love call," adding, "As the electrification supply chain of North American OEMs is expanding in earnest, the future trends of Ford, Stellantis, and others are likely to be positive for Ecopro BM."

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