[Click eStock] "EcoPro BM Lowers Second Half Earnings Forecast... Target Price Down"

Kiwoom Securities analyzed on the 1st that EcoPro BM's performance outlook for the second half of the year needs to be revised downward. Accordingly, it maintained the investment rating of 'Outperform' and lowered the target stock price to 220,000 KRW.

Researcher Kwon Junsu of Kiwoom Securities stated, "Considering the recent electric vehicle sales environment, a significant rebound in sales volume in the second half is unlikely," and added, "It is necessary to lower the performance expectations."

Researcher Kwon forecasted, "In the third quarter, sales are expected to decrease by 69% year-on-year to 565.8 billion KRW, with an operating loss of 8.5 billion KRW, turning to a deficit," and "Although the decline in the average selling price (ASP) in the third quarter is expected to narrow, the sales volume to major clients Samsung SDI and SK On will significantly decrease due to the slowdown in electric vehicle (EV) demand."

He further noted, "In particular, it is understood that inventory adjustments of NCA products were made in July due to the demand slowdown from European automakers," and "The recovery timing of NCM sales appears to have been delayed from the third quarter to the fourth quarter due to low operating rates at SK On's US and European plants."

He added, "Regarding profitability, a return to deficit is expected again in the third quarter due to the burden of fixed costs from continued low operating rates and a reduction in the scale of inventory asset allowance reversals."

Meanwhile, Kiwoom Securities projected EcoPro BM's 2024 sales to decrease by 54% year-on-year to 3.1909 trillion KRW, and operating profit to plunge by 89% to 17.3 billion KRW.

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