KB Securities analyzed on the 27th that the recovery of major customers' shipments to Europe for ECOPRO BM is slow, necessitating further confirmation on the rebound timing. The target price has been revised down from 140,000 won to 130,000 won, while the investment opinion remains 'buy'.
Lee Chang-min, a researcher at KB Securities, noted, 'The reason for lowering the target price is that the shipment outlook for major customers has been adjusted downwards and the impact of the decline in the exchange rate against the U.S. dollar has been reflected, resulting in a 38% and 16% reduction in operating profit estimates for this year and next year, respectively, compared to the previous estimates.'
KB Securities estimated ECOPRO BM's second-quarter revenue and operating profit at 702.3 billion won and 13.3 billion won, respectively. Revenue represents a 13% decline compared to the same period last year, while operating profit shows a 243% increase during the same period.
The researcher stated, 'The rapid increase in sales directed toward SK On is positive due to the operation of Hyundai Motor Group's U.S. Meta Plant (HMGMA) new factory and the preparations for Blue Oval SK's operations,' but added, 'The sluggish shipments to Europe and exchange rate trends could act as variables affecting performance.'