[Click eStock] "EcoPro BM Secures Earnings Visibility Until 2026... Target Price Raised"

[Asia Economy Reporter Kwon Jaehee] Daishin Securities maintained its 'Buy' rating on EcoPro BM on the 4th and raised the target price by 9.7% from the previous level to 170,000 KRW.

EcoPro BM's second-quarter earnings recorded sales of 1.19 trillion KRW and operating profit of 102.9 billion KRW, representing increases of 282% and 254% respectively compared to the previous year.

Jeon Changhyun, a researcher at Daishin Securities, analyzed, "The solid demand for high-nickel cathode materials, increased shipments due to higher AM6 operating rates, price increases linked to rising metal prices, and the effect of exchange rate appreciation drove the earnings."

Sales by segment were 535.8 billion KRW for Non-IT, 587.5 billion KRW for EV, and 52.5 billion KRW for ESS. In particular, the EV segment's growth is attributed to strong front-end demand expansion and increased shipments of next-generation products such as SDI Gen5 battery NCA for EVs and SK On's NCM half-half products for Ford.

Strong performance is also expected in the third quarter, with estimated sales of 1.47 trillion KRW and operating profit of 132.7 billion KRW. The price increase linked to metal prices is expected to continue, and shipments focused on EVs are expanding, anticipating the highest sales and operating profit following the previous quarter.

Accordingly, cumulative sales from this year through 2026 are projected to reach 58.5 trillion KRW.

Researcher Jeon stated, "The EcoPro Group has raised its cumulative sales guidance for 2022-2026 from 46 trillion KRW to 59 trillion KRW," adding, "It appears that they have secured considerable visibility for performance through 2026 in all aspects including mid- to long-term contracts, order-based capacity expansion, vertical integration, and profitability."

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