"Ecopro BM Supplying to BMW, Mercedes-Benz, Target Price Maintained" [Click e-Stock]

Shin Young Securities Maintains Target Price at 170,000 Won

On September 29, Shin Young Securities maintained its "Buy" investment rating and target price of 170,000 won for Ecopro BM.

Jinsoo Park, a researcher at Shin Young Securities, stated, "While weak sales performance at key client companies continue and near-term sales contraction is inevitable, expectations are building for a full-scale ramp-up in deliveries of large pre-booked orders for European customers around the second half of next year, as well as the inclusion of consolidated earnings from the Indonesian BNSI smelter."

Park assessed that Ecopro BM holds strong medium- to long-term growth potential. He said, "Mitigating sales gaps using the Hungarian base and vertical integration of nickel intermediates (MHP) are the pillars supporting medium- to long-term growth." Specifically, the second line at the Hungarian plant is scheduled to begin operations at the end of September, expanding production capacity to 60,000 tons through line upgrades. Through Samsung SDI, the company will also supply over 200,000 tons of large-scale cathode materials to numerous customers in Europe such as BMW, Mercedes-Benz, and Audi.

The company is using proceeds from a rights offering to invest, together with its parent, in a stake in the Indonesian BNSI smelter, which will be capable of producing 90,000 tons of MHP annually (operations scheduled for the second quarter of next year). Ecopro BM also plans to incorporate the smelter as a consolidated subsidiary in the future.

Park stated, "Ultimately, consolidated annual revenue could reach 2.5 trillion won, with operating profit of about 500 billion won reflected. This would represent 162% of our estimated operating profit for 2028, indicating significant improvement in profit-generating capability."

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