[Click eStock] "EcoPro BM, Valuation Pressure... Target Price Down"

Daishin Securities lowered the target price for EcoPro BM from 300,000 KRW to 250,000 KRW on the 4th. While the medium- to long-term growth prospects are positive, it is judged that the stock price has already reflected a significant portion of this.

EcoPro BM is estimated to record annual sales of 7.374 trillion KRW and an operating profit of 311 billion KRW this year. Compared to last year, sales increased by 38%, but operating profit decreased by 18%.

However, next year, sales are expected to increase by 21% to 8.89 trillion KRW, and operating profit is projected to rise by 49% to 462 billion KRW. The recovery in demand for power tools and the expansion of EV sales volume are expected to significantly increase shipments next year. Additionally, profitability is expected to improve due to the stabilization of metal prices at a lower level and the easing of inventory burdens.

Jeon Chang-hyun, a researcher at Daishin Securities, said, "Medium- to long-term production expansion plans, next-generation product development, and vertical integration of the value chain through group companies are positive," but added, "It is necessary to consider valuation burdens."

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