[Featured Stock] WCP Rises on Expectations of Improved Performance with Client Operation Rate Recovery

WCP is on the rise. It appears that securities firms' analysis expecting performance improvement due to the recovery of client companies' operating rates has had an impact.

As of 9:33 AM on the 28th, WCP was trading at 16,510 KRW, up 1,000 KRW (6.45%) compared to the previous trading day.

KB Securities forecasted that WCP's sales and operating profit this year will reach 86.8 billion KRW and 4.6 billion KRW, respectively. Compared to the previous year, sales are expected to increase by 41%, while operating profit is expected to decrease by 55%.

Researcher Changmin Lee of KB Securities said, "Regarding sales, amid the continued sluggish demand for cylindrical batteries, sales of medium-to-large batteries for EVs by major clients have shown signs of slowing down since the end of the second quarter, so a decrease compared to the first half is estimated," adding, "Profitability is also expected to continue to show a weaker trend compared to the average year."

However, from next year, performance improvement is expected due to the recovery of major clients' operating rates. The projected sales for next year are 420 billion KRW, and operating profit is 34.2 billion KRW, representing increases of 6% and 187%, respectively, compared to the previous year.

Researcher Lee stated, "Since the business conditions of Samsung SDI, which accounts for most of WCP's sales, are expected to improve, an improvement in operating rates is also anticipated," and added, "Due to the strengthened carbon dioxide (CO2) emission regulations by the European Union (EU) starting in 2025, demand for EV battery inventory accumulation by European OEMs is expected. Additionally, with the start of operations at the US Samsung SDI-Stellantis JV plant from the end of this year, demand for North America is projected to increase significantly."