[Alpha Biz= Reporter Kim Minyoung] On the 7th, Kiwoom Securities maintained its 'Outperform' rating (outperforming market returns) for EcoProBM and adjusted its target price from the previous 270,000 won to 260,000 won, a 3.7% decrease.
EcoProBM is expected to turn into a deficit with an operating loss of 114 billion won in the second quarter of this year.
Kiwoom Securities stated, "It is expected that the downward trend in average selling prices (ASP) due to softened demand and decreased lithium prices will continue in the second quarter, limiting the improvement in sales volume of bipolar plates." They further explained, "The ongoing low operating rates at the major customer sites, including SK On's factories in the United States and Europe, are expected to persist in the second quarter."
They added, "Due to the continued low operating rates, it is expected that the second quarter will turn into a deficit due to the burden of fixed costs and a reduction in the size of inventory asset reversals."
Kiwoom Securities considered the recovery pace of the electric vehicle market in Europe and the United States as a variable.
They emphasized, "As major front-line customers such as Ford and Volkswagen continue to announce plans to adjust electric vehicle production speeds, maintaining a conservative view on performance until the first half of the year seems inevitable."
Furthermore, they stated, "It is expected that gradual increases in inventory due to restocking demand following front-line customer inventory adjustments and the effects of new car launches will only be possible in the second half of the year."
Alphabiz Kim Minyoung (kimmy@alphabiz.co.kr)
