[Click e-Stock] "Ecopro BM to Benefit Most from European EV Recovery... Target Price Set at 270,000 Won"

Hungarian Plant Ramps Up Operations...
Second-Quarter Earnings Improvement Expected

"European EV Sales Recovery and ESS Growth Momentum"

As the European electric vehicle market enters a recovery phase, analysts in the securities industry believe that Ecopro BM will significantly boost its profitability by ramping up operations at its Hungarian plant.

According to Daol Investment & Securities on May 19, analyst Yoo Jiwoong stated the previous day, "Among battery material companies, Ecopro BM possesses the largest available production capacity, and a performance rebound has begun." He maintained a buy rating on Ecopro BM with a target price of 270,000 won.

Yoo highlighted that since March, European electric vehicle sales have started to grow rapidly, increasing more than 40% year-on-year. Accordingly, the growth potential of Ecopro BM's Hungarian subsidiary, which recently began operation, could be reflected in the share price sooner than expected.

As of the first quarter of this year, Ecopro BM's cathode material supply volume expanded by about 20% compared to the previous quarter. In terms of sales revenue, the electric vehicle (EV) business showed a notable 24% increase quarter-on-quarter. This is attributed to the recovery in EV sales by existing automotive clients, such as Samsung SDI, signaling expectations for significant earnings improvement in the second quarter.

Yoo noted, "This rebound in the European electric vehicle market includes the effect of new EV launches by Hyundai Motor and Kia in Europe." He explained, "Kia's EV2 and Hyundai's Ioniq 3 are entering mass production sequentially from the second quarter, so the effect of increasing volumes will become more pronounced in the second half of the year."

The contribution from other business divisions, including energy storage systems (ESS), is also positive. Yoo added, "Alongside increased sales of power tools and battery backup units (BBUs), the growth in ESS sales has become prominent." He further stated, "ESS sales in the first quarter of this year surged 140% year-on-year. With Samsung SDI's new growth engine centered in Europe, this accompanying sales rebound is likely to be sustained over the long term."

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