[Click eStock] "EcoPro BM Expected to Turn to Loss in Q2"

Ebest Investment & Securities forecasted that Ecopro BM will record an operating loss in the second quarter on the 7th. Accordingly, the operating profit estimate for this year was also lowered. The investment opinion 'Hold' and the target stock price of 230,000 KRW were maintained.

Researcher An Hoesu of Ebest Investment & Securities stated, "The consolidated sales for the second quarter are expected to decrease by 44.8% year-on-year to 1 trillion KRW, and the operating loss is expected to turn to a deficit of 35.5 billion KRW."

Researcher An explained, "It is difficult for shipment volume to recover until the first half of the year because NCA continues to face weak demand in Europe, and NCM is undergoing customer inventory adjustments," adding, "The average selling price (ASP) is expected to decrease by 10% compared to the previous quarter, and with metal prices stabilizing in the second quarter, the scale of reversal of valuation losses will decrease."

The consolidated sales for 2024 are projected to decrease by 33% year-on-year to 4.5 trillion KRW, and operating profit is expected to plunge by 59% to 76 billion KRW. Accordingly, the operating profit estimate was also revised downward by 63%.

Researcher An analyzed, "What is needed for additional upside is securing more customers," adding, "To this end, Ecopro BM plans to focus on expanding single-crystal products, establishing an LF(M)P pilot line, and responding to volume lines with high-voltage mid-nickel products."

He continued, "With continued mineral investments at the holding company level and the establishment of a battery circular economy (closed-loop), not only cost reduction but also compliance with the IRA legislation is expected."

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