[Click eStock] "EcoPro BM, Stronger Recovery Than Expected... Target Price Up"

NH Investment & Securities analyzed on the 12th that the recovery strength of front-end demand for Ecopro BM will be stronger than expected. The investment rating was maintained at 'Buy,' and the target price was raised to 165,000 KRW.

Ecopro BM recorded sales of 464.9 billion KRW and an operating loss of 9.6 billion KRW in the fourth quarter of last year. Sales decreased by 61% compared to the same period last year. Juminwoo, a researcher at NH Investment & Securities, said, "The performance exceeded expectations," adding, "Due to the reversal of a 12.9 billion KRW inventory valuation allowance, the one-time cost scale was minimal compared to competitors, confirming solid results."

He forecasted that sales and operating profit for the first quarter of this year will reach 559.7 billion KRW and 2.8 billion KRW, respectively. The researcher predicted, "Sales of cathode materials will increase compared to the previous quarter due to inventory depletion and restocking effects following the launch of new models by the end customers."

He emphasized, "The recovery strength of front-end demand appears to be stronger than expected, so we are raising the shipment forecast for 2025," adding, "This year's recovery is expected to be led by nickel, cobalt, and manganese (NCM), with NCM end customers preparing for inventory depletion in the second half of 2024 and new car launches in 2025 to comply with European carbon dioxide (CO2) regulations."

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