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Photo = Yonhap news |
[Alpha Biz= Reporter Kim Sangjin] Sangsangin Securities reduced its target price for EcoPro BM by 30%, from 200,000 KRW to 140,000 KRW, on November 25, citing an inevitable short-term decline in utilization rates. Despite the adjustment, the firm maintained its "Neutral" investment rating.
In its report, Sangsangin Securities highlighted uncertainties in EcoPro BM's growth prospects in the North American market, noting that key client strategies for the region have been delayed until after 2026.
While the firm lowered its performance expectations for EcoPro BM in 2024, it pointed out that third-quarter results—marked by an operating loss of 41.2 billion KRW—did not reveal any unexpected adverse factors beyond the anticipated inventory valuation loss of 18.8 billion KRW.
Sangsangin Securities also revised EcoPro BM’s total production capacity for next year to 280,000 tons, but production volume is expected to remain at a similar level to last year. As a result, a short-term decline in utilization rates appears unavoidable.
The firm emphasized that EcoPro BM’s medium- to long-term growth will depend on the recovery of electric vehicle (EV) demand and a gradual rebound in raw material prices, contingent on the resolution of policy uncertainties in the North American market after next year.
AlphaBIZ Kim SangJin(letyou@alphabiz.co.kr)
