[Click eStock] "KPS, Korea's First to Recycle Both LFP and NCM... Target Price 16,500 Won"

Hana Securities on the 17th presented a target price of 16,500 KRW for KPS, describing it as the first domestic recycling company capable of handling both LFP (Lithium Iron Phosphate) and NCM (Nickel-Cobalt-Manganese).

Kim Doohyun, a researcher at Hana Securities, stated in the report that “KPS is scheduled to operate the first effective LFP specialized recycling plant in Korea through collaboration with government-funded research institutes,” and added, “Continuous exchanges have led to expectations for the successful development of NCM recycling technology as well.”

He also mentioned, “Through the UPS (Uninterruptible Power Supply) recycling contract with Samsung Electronics, KPS has begun a successful entry into the industrial battery business, moving beyond lead-acid batteries.”

He conveyed that KPS’s technology combined with the LFP recycling technology possessed by research institutes has led to a decision on commercialization research for LFP battery recycling with government-funded research institutes, with technology transfer planned.

He explained, “By the end of this year, it is expected that a pilot plant will be operated using a 600-pyeong factory within KPS’s approved site, and it is anticipated that approximately 10,000 tons of batteries, based on battery packs, can be processed including subsequent treatment,” adding, “Additionally, there is an idle approved site of 5,000 pyeong, allowing for expansion simultaneously with the technology transfer of the NCM pilot line.”

He forecasted, “KPS’s consolidated annual performance is expected to reach sales of 99.2 billion KRW and operating profit of 10.4 billion KRW this year, representing increases of 578.3% and a turnaround to profitability compared to the previous year, respectively. In 2024, sales are projected to be 180.2 billion KRW and operating profit 23.8 billion KRW, up 81.7% and 128.9% year-on-year, respectively.”

He continued, “In March this year, KPS successfully realized its planned business transition to lithium-ion batteries by acquiring Segiritec as a 100% subsidiary,” and judged, “It is now time for a revaluation as a secondary battery recycling company alongside its existing display capabilities.”

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