Heungkuk Securities said on the 9th that EcoPro BM is expected to benefit from changes in Europe's policy environment as its Hungary plant begins operations in 2026. It maintained its investment opinion of Buy and raised the target price to 220,000 won from 190,000 won. EcoPro BM's previous trading day closing price was 173,300 won.
Jeong Jin-su, a Heungkuk Securities researcher, said, "With the introduction of the 'Industry Promotion Act,' centered on self-reliance in advanced industries in Europe, reportedly imminent, the strategic value of producers in advanced industries such as batteries, semiconductors and key materials within Europe will rise further."
He added, "EcoPro BM is reportedly aiming for full-scale commercial operation of the Hungary plant in the second quarter of 2026, and as the first among domestic cathode material companies to begin building a European production base, it is expected to be the biggest beneficiary."
He also cited the growth potential of the European market as a positive factor. Jeong said, "Europe is a proven market, with EV demand penetration as a base and additional replacement demand for Chinese batteries," adding, "EcoPro BM's productivity-driven competitive edge is also expected to help secure bargaining power with local customers."
However, due to concerns over EV demand for vehicles sold in the United States, overall cathode material sales are expected to decline. Jeong estimated, "Despite Europe-bound demand stabilizing lower, cathode material sales volume will fall 10.1% quarter over quarter due to concerns over U.S. EV demand."
Despite the drop in sales volume, it projected that the company will maintain profitability by recognizing one-off non-operating gains stemming from a stronger exchange rate and higher lithium prices.
According to Jeong's analysis, EcoPro BM's consolidated fourth-quarter revenue this year is 563.3 billion won and operating profit is 22.7 billion won. These figures are down 9.4% and 55.1%, respectively, from a year earlier.