NH Investment & Securities said April 30 it expects EcoPro BM to expand its second plant in Hungary in the second half of the year, raising its target price 14% to 280,000 won and maintaining its “buy” rating.
In a report, NH analyst Joo Min-woo said customer strategies are being revised to reflect Europe’s IAA rules and the TCA (EU-U.K. trade agreement), which he said is increasing the likelihood of winning orders from new customers, including CATL.
Joo said EcoPro BM is a key cathode-material supplier to Samsung SDI and is expected to benefit as Samsung SDI expands European electric-vehicle sales for models including the Ioniq 3, EV2, Audi, Benz and BMW.
He added that EcoPro BM is also expected to benefit directly from a recovery in sales of cylindrical batteries used in BBU and power tools.
Joo said EcoPro BM’s first-quarter revenue fell 4% from a year earlier to 605.4 billion won, while operating profit was 20.9 billion won, beating the market consensus. He attributed the results to the start of mass production of nickel-cobalt-manganese-aluminum (NCMA) cathode materials for Samsung SDI’s new European volume models, including the EV2 and Ioniq 3, and improved non-EV sales as demand for Samsung SDI’s power tools and BBU strengthened.
He said sales to SK On totaled about 4,000 tons, rising from the previous quarter as volumes for the Europe-bound Volkswagen ID.4 gradually recovered. Joo said the factors behind the strong first quarter are expected to persist, with both selling prices and volumes continuing to grow.
* This article has been translated by AI.
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