iM Securities assessed on the 2nd that the valuation of ECOPRO BM remains high, posing a burden.
iM Securities maintained a 'neutral (Hold)' investment opinion on ECOPRO BM and lowered the target price from 110,000 won to 90,000 won. iM Securities' target price is 6% (5,700 won) lower than ECOPRO BM's previous closing price of 95,700 won.
Jung Won-seok, a researcher at iM Securities, noted that ECOPRO BM is securing medium- to long-term growth engines by vertically integrating its value chain and expanding its new factory in Hungary, which is positive. The issue is that the expected price-to-earnings ratio (PER) for 2026 is 67 times, the highest among global secondary battery cell and materials corporations.
Researcher Jung said, "I expect ECOPRO BM's performance to show a gradual recovery starting this year," but added, "Due to the high valuation, there will be limited potential for stock price increases for the time being."
The composition of ECOPRO BM's customers for electric vehicle cathode materials was also cited as a risk factor. Researcher Jung stated, "A selective partnership strategy that considers the future survival possibilities of customers is crucial," noting that "However, based on last year's data, the share of customers expected to dominate the market, such as Tesla, General Motors (BMW), Volkswagen, and Hyundai, is just about 20% of the electric vehicle cathode material shipments from ECOPRO BM, which is low."
Researcher Jung projected that ECOPRO BM's cathode material shipments would increase by about 35% this year compared to last year, but he anticipated that the increase in sales would be somewhat limited due to a forecasted decline in cathode material prices of about 10-15%.
Researcher Jung estimated, "With rising operating rates, cost reductions, and the reversal of provisions for inventory asset evaluations, it is expected that operating profit will be about 95 billion won this year, allowing for a return to profitability."