[Click eStock] "EcoPro BM, Stock Price Fully Reflects Production Volume Until 2030... Investment 'Neutral'"

NH Investment & Securities downgraded its investment opinion on EcoPro BM from Buy to Hold on the 4th. However, the target price was raised from 310,000 KRW to 410,000 KRW. EcoPro BM's current stock price is 390,000 KRW (based on the previous closing price).

EcoPro BM, the largest company by market capitalization on KOSDAQ, recorded sales of 1.9 trillion KRW in the second quarter. This represents a 61% increase compared to the same period last year. Operating profit for the same period increased by 12% to 114.7 billion KRW.

The outlook for third-quarter earnings is not favorable. While sales are expected to remain at the second-quarter level, operating profit is forecasted to fall significantly short of market expectations at 72.1 billion KRW. This is due to anticipated price declines and delayed recovery in demand for electric power tools. Earnings recovery is expected around the fourth quarter.

Juminwoo, a researcher at NH Investment & Securities, stated, "EcoPro BM's current stock price sufficiently reflects the 1 million ton production capacity (CAPA) expected by 2030," adding, "Considering the limited upside potential until further expansion is confirmed, we are downgrading the investment opinion to Hold."

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