[Click eStock] "Cheonbo, Q4 Operating Profit Expected to Decline"

[Asia Economy Reporter Hwang Yoon-joo] DB Financial Investment forecasted on the 14th that Cheonbo's operating profit in the fourth quarter is expected to decrease. The investment opinion 'Buy' and the target stock price of 350,000 KRW were maintained.

DB Financial Investment Research Center stated, "The operating profit for the fourth quarter of this year is expected to decrease by 2.3% compared to the previous quarter to 15 billion KRW, due to continued poor performance in electronic materials and the impact of year-end one-time expenses."

Although there is uncertainty in the shipment volume of special electrolytes due to year-end inventory adjustments by customers, it is expected to maintain a level similar to the third quarter as major battery companies expand facilities and demand for electric vehicle batteries continues to grow. However, profitability is analyzed to slightly decline compared to the previous quarter due to the ongoing fixed cost burden of new F-type facilities and the reflection of year-end one-time labor costs.

DB Financial Investment stated that rapid growth is expected for Cheonbo starting from 2023. The Research Center diagnosed, "From 2023, the profit contribution of large-scale expansion facilities such as electrolyte additives, P-type electrolytes, and F-type electrolytes is expected to begin in earnest," adding, "Expectations for additional profitability improvements due to production process enhancements remain strong."

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