[Alpha Biz=(Chicago) Reporter Paul Lee] Shinhan Investment & Securities lowered its target stock price by 50%, judging that Chunbo's poor performance will continue.

Shinhan Investment & Securities Co. said it has lowered its Chunbo target price by 50 percent from 300,000 won to 150,000 won. However, the investment opinion maintained the purchase.

"The decrease in quantity is the main reason for the sluggish performance due to falling prices due to lower selling prices and slowing demand. The stock price of Chunbo fell 53% compared to the beginning of the year," said Shinhan Investment & Securities Co. "In the case of prices, sales prices fell due to falling prices of raw materials for secondary batteries." He added, "If you look at the average price fluctuation of secondary battery products, it recorded 62,232 won in the third quarter of this year from 81,835 won in 2022."

From 2024, full-fledged expansion effects can be reflected and recovery can be expected.

"The size of production capacity (CAPA) is from 5,000 tons in 2022 to 25,000 tons in 2024, and we can expect to stabilize prices and improve demand at the same time as expansion in 2024," said Shinhan Investment & Securities Co. "We should pay attention to mid- to long-term growth momentum rather than short-term performance."

 

[ⓒ AlphaBIZ. 무단전재-재배포 금지]