[Hot Report] Hana Securities' Sincere Analysis Toward 'Widaehan Ecopro'

Effectively Issuing Sell Recommendations... Brakes on Stock Price Surge
Well-Prepared Companies for the Future Surpass Corporate Value in 5 Years

Domestic securities firms' research centers published numerous stock reports during the week from the 10th to the 14th. Among them, the EcoPro report released by Hana Securities on the 12th caused quite a stir. The EcoPro stock price, which had risen 646.6% as of the 11th this year, fell 21% over two days immediately after the report was published. This put a brake on the stock that had been rising relentlessly this year.

On the 12th, the day the EcoPro analysis report was released, foreign and institutional investors sold a net 102.7 billion KRW and 11.6 billion KRW worth of EcoPro shares, respectively. On that day, EcoPro's stock price dropped 16.8%. Although individual investors showed a net buying advantage of 117.4 billion KRW, they could not prevent the price decline. On the 13th, institutional investors sold a net 30.5 billion KRW worth of EcoPro shares, while foreigners bought a net 14.7 billion KRW. Individuals also recorded a net purchase of 9.4 billion KRW, but the stock price still fell more than 5%.

Researcher Kim Hyun-soo of Hana Securities stated, "It is a time when a thorough review of EcoPro's fair value is necessary," and analyzed, "The target market capitalization is 11.8 trillion KRW." Considering that EcoPro's market capitalization was 19.9 trillion KRW based on the closing price on the 11th, just before the report was published, this effectively represented a 'sell' recommendation.

Researcher Kim explained, "For companies that have achieved vertical integration from metal processing to precursor and cathode material manufacturing, enormous value creation is possible," adding, "EcoPro has established a vertically integrated ecosystem connecting cathode materials, lithium, precursors, and recycling through its affiliates EcoPro BM, EcoPro Innovation, EcoPro Materials, and EcoPro CnG."

He continued, "By 2027, the plan is to internalize 33% of precursors, 31% of nickel, and 26% of lithium," adding, "Regarding lithium, one of the most important raw materials in the battery industry, they aim to secure a production capacity of 82,000 tons by 2027."

Researcher Kim also analyzed, "Through entry into the European and North American markets, the annual cathode material production capacity and sales volume targets for 2027 are set at 710,000 tons and 600,000 tons, respectively," and added, "Since expansion is based on binding contracts with customers, the likelihood of achieving cathode material sales targets is high."

He evaluated, "EcoPro is a company that embodies both the growth value of the battery industry and the differentiated value of the raw materials business, which Hana Securities has emphasized over the past three years," and said, "It is a company well-prepared for the future." However, he emphasized, "The market capitalization has exceeded the expected corporate value for five years from now," and "For the stock price to rise further, the passage of time itself to reflect 2030 is necessary." Researcher Kim judged that EcoPro is difficult to consider a 'great company' or a 'good stock' as of the 11th.

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