KOSDAQHolding Companies086520

Ecopro

₩88,800▲ 4.35%2026-10-02 close

Market Cap

₩12.1T

Turnover

₩96.6B

Volume

1.1M

Shares out.

140M

PER

79.8×

PBR

5.0×

EPS

₩1,031

Dividend Yield

0.18%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩150 per share · Prices as of the 2026-10-02 close

Report overview

A Holding Company Between Raw-Material Integration and a Capital Raise

EcoPro is a holding company spanning cathode materials, precursors, lithium and nickel smelting; after returning to an operating profit in 2025, it is simultaneously pushing Indonesian nickel investments and a large rights offering at its key subsidiary.

1
In 2025 consolidated revenue was KRW 3.413 trillion with an operating profit of KRW 213.8 billion (6.3% margin), a swing from the KRW 293.0 billion operating loss of 2024, yet a net loss attributable to owners of KRW 149.8 billion remained.
2
Quarterly operating profit fell from KRW 149.4 billion in 3Q25 to KRW 33.6 billion in 2Q26, while owner-attributable net income swung sharply each quarter on derivative valuation effects.
3
At its 2Q26 results briefing the company said higher lithium selling prices cushioned profits and that the Indonesian smelter disruption was temporary.
4
The BNSI smelter in Indonesia (90,000 tons of nickel a year) targets completion and trial production this year with full operation aimed at 2Q27, and the group has stated it will secure offtake rights for 65,000 tons of nickel in total.
5
EcoPro BM's KRW 1.2 trillion rights offering, after a correction demand from the Financial Supervisory Service, is proceeding toward an October subscription schedule, and the holding company has said it will subscribe to 100% of its allocation plus up to 120% in excess subscription.

Business structure

EcoPro is not an operating company selling its own products but a holding company that bundles the entire battery-materials value chain into subsidiaries.

Its listed units are EcoPro BM in high-nickel cathode materials, EcoPro Materials in precursors and EcoPro HN in environmental solutions such as chemical filters and greenhouse-gas abatement, while unlisted arms cover lithium (EcoPro Innovation), recycling (EcoPro CNG) and equity stakes in Indonesian nickel smelters.

According to reports citing the 2Q IR materials the company released on 4 August 2026, EcoPro BM posted revenue of KRW 576.7 billion and operating profit of KRW 18.0 billion, EcoPro Materials revenue of KRW 178.8 billion with an operating loss of KRW 10.6 billion, and EcoPro HN revenue of KRW 51.5 billion with operating profit of KRW 5.8 billion.

In other words, most consolidated revenue comes from cathode materials, precursors still hover near break-even, and the environmental unit is small but increasingly contributive thanks to a strong semiconductor end-market.

In the same materials, the share of external precursor sales rose from 13% to 36% quarter on quarter while internal sales fell from 28% to 13%, confirming a shift away from captive dependence.

The customer base has centred on domestic battery cell makers, but the company is discussing with customers a structure in which Hungarian plant operations are paired with supply from Pohang, and is courting smaller customers and start-ups alongside large accounts to lift utilisation.

On raw materials, management describes nickel as a core input accounting for 50% of cathode costs, the rationale behind its Indonesian smelting stakes.

Competitively it faces domestic peers such as POSCO Future M and L&F in ternary cathodes and Chinese players in precursors and lithium, and the holding company's value ultimately tracks subsidiary earnings and the payoff from raw-material integration.

Earnings trend

Quarterly revenue · Operating profit

₩931.7B₩16.2B25Q2₩959.4B₩149.4B25Q3₩715.1B₩46.8B25Q4₩818.3B₩56.4B26Q1₩821.5B₩33.6B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩5.6T₩613.2B2022₩7.3T₩298.2B2023₩3.1T-₩293B2024₩3.4T₩213.8B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩931.7B	₩16.2B	1.7%
2025Q3	₩959.4B	₩149.4B	15.6%
2025Q4	₩715.1B	₩46.8B	6.5%
2026Q1	₩818.3B	₩56.4B	6.9%
2026Q2	₩821.5B	₩33.6B	4.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩5.6T	₩613.2B	₩220.6B	10.9%	16.9%	112.0%
2023	₩7.3T	₩298.2B	₩51B	4.1%	3.1%	116.8%
2024	₩3.1T	-₩293B	-₩206B	−9.4%	−12.8%	112.0%
2025	₩3.4T	₩213.8B	-₩149.8B	6.3%	−7.6%	117.9%

Consolidated basis (financial statements including subsidiaries) · Final figures from DART filings · Net income attributable to owners of the parent · Data as of 2026-09-04

Earnings analysis

The multi-year record lays the cycle bare.

From 2022 revenue of KRW 5.640 trillion and operating profit of KRW 613.2 billion (10.9% margin), revenue peaked at KRW 7.260 trillion in 2023 but operating profit shrank to KRW 298.2 billion (4.1%); in 2024 revenue collapsed to KRW 3.128 trillion with an operating loss of KRW 293.0 billion (-9.4%).

In 2025 revenue of KRW 3.413 trillion and operating profit of KRW 213.8 billion (6.3%) marked a return to operating profitability, yet a KRW 149.8 billion net loss attributable to owners persisted, so operating and bottom-line directions diverged.

Explaining that gap, management said in its 2025 results briefing that share-price declines related to RCPS and PRS issued on EcoPro Materials led to recognition of roughly KRW 300 billion of derivative liabilities at end-2025, weighing on consolidated liabilities and net income.

By quarter, revenue of KRW 931.7 billion and operating profit of KRW 16.2 billion in 2Q25 gave way to KRW 959.4 billion and KRW 149.4 billion in 3Q25, while 4Q25 combined revenue of KRW 715.1 billion and operating profit of KRW 46.8 billion with a KRW 190.1 billion owner-attributable net loss.

In 1Q26 revenue was KRW 818.3 billion with operating profit of KRW 56.4 billion and owner-attributable net income of KRW 210.4 billion, a period shaped by valuation reversals consistent with the company's remark that most of the PRS contracts struck in the prior fourth quarter were settled, bringing about KRW 180 billion of cash in April 2026.

In 2Q26 revenue was broadly flat at KRW 821.5 billion but operating profit narrowed to KRW 33.6 billion, with the company stating that heavy rain and landslides in the GEN area lowered utilisation and natural-disaster damage at the Indonesian nickel smelter delayed some projects, though recovery work is complete and production is restarting.

Operating cash flow improved from negative KRW 518.6 billion in 2022 to KRW 80.9 billion in 2023, KRW 488.8 billion in 2024 and KRW 339.1 billion in 2025, while the debt-to-equity ratio edged up from 112.0% in 2024 to 117.9% in 2025.

Industry analysis

The end market is broadening from a single electric-vehicle demand engine toward energy storage and data-centre backup power. At its 2Q26 briefing the company said stagnant European EV demand trimmed cathode revenue and profit slightly, while growth in AI data-centre and power-application demand cushioned results.

Raw-material prices are rebounding: per Trading Economics data, lithium stood at CNY 152,000 per ton on 4 September 2026, up 8.38% over a month and 102.69% from a year earlier.

Reuters, however, reported that supply disruptions and speculative trading drove the rally and that, with EV demand recovery still unclear, higher prices do not translate straight into better earnings for materials makers, and analysts flagged the risk of a price correction if idled capacity restarts.

In precursors, cost competition with Chinese suppliers is the swing factor, and the company judged that weakening cost competitiveness of Chinese precursors has created an opening for Korean products to gain share in Europe.

On supply-chain regulation, management expects nickel produced at BNSI to be classified as material compliant with US foreign-entity-of-concern rules, making regulation-eligible feedstock a competitive variable.

The environmental-materials arm runs on a separate cycle: the company noted that order realisation is accelerating on the semiconductor upturn and that a roughly KRW 33 billion supply contract disclosed in late July should help expand its greenhouse-gas abatement business overseas.

Outlook

Management frames 2026 as the year its upstream investments show up in the numbers and has guided to an earnings profile weighted to the second half.

In the 2Q26 release it said it expects a gradual recovery in Indonesian smelter utilisation in the second half, continued improvement in the environmental business, sustained lithium profitability and portfolio diversification via shipments to new North American customers.

The pivotal schedule is the second phase in Indonesia: the 90,000-ton-per-year BNSI smelter will house three autoclaves of 30,000 tons each, two delivered and the third due in September, with completion and trial production targeted for year-end and full operation expected in the second quarter of next year.

Ownership stands at 39% for EcoPro, 30% for Indonesia's state-owned PTVI and 21% for China's GEM, with the remaining 10% under discussion with strategic investors including a sovereign wealth fund.

On funding, the company said on its 2Q26 call that parent-only cash stood at about KRW 600 billion, that its total BNSI commitment is roughly USD 490 million (KRW 735 billion at an assumed rate of 1,500 won), of which about KRW 277.5 billion has been paid in, with financial investors slated to join for the remainder.

It also stated that current liquidity is sufficient to address concerns about the subsidiary rights offering and large investments, and that there is no plan for additional capital raising at the holding-company level.

At the subsidiary level, management outlined that the Hungarian plant now has 54,000 tons of annual capacity, with output plans of 10,000 tons this year, 30,000 tons next year and over 50,000 tons thereafter, capacity expansion to 60,000 tons through retrofits, and a goal of lifting new customers, including automakers, to half of sales.

These plans assume completion of the rights offering and durable metal prices, so the actual path of both variables will shape earnings from here.

Valuation

PER

79.8×

PBR

5.0×

ROE

7.5%

EPS

₩1,031

BPS

₩16,466

Dividend per share

₩150

The holding-company structure requires two filters when reading valuation.

First, of total equity of KRW 4.487 trillion at end-2025, only KRW 1.966 trillion was attributable to owners, less than half, so consolidated equity is not the same as shareholder net assets, and the shares trade at a premium to owner-attributable book value.

Second, over the latest four quarters (3Q25 to 2Q26) owner-attributable net income was positive, but much of its variation came from non-operating items such as derivative valuation and settlement, while quarterly operating profit in that span ranged widely from KRW 149.4 billion down to KRW 33.6 billion.

As a result, earnings-based multiples are more sensitive to accounting swings than to normalised operating power, and with the battery-materials cycle only in the early stage of recovery those multiples have tended to sit above the KOSDAQ market average.

The dividend remains small, leaving the payout yield below the market average, so the weight of the debate rests less on distributions than on the payoff from raw-material integration and the pace of subsidiary profit recovery.

For reference, NICE Investors Service commented in July 2026 that the subsidiary rights offering would partly ease the rising borrowing burden across the group, while investments exceeding the incoming cash proceeds remain a strain on group credit quality.

PER, EPS, PBR and BPS are all calculated in-house (the same method as Naver and Toss) · Dividend yield = cash dividend per share from DART filings (supplemented by KRX) ÷ current price · As of 2026-09-04

Bull factors

Expanding Nickel Offtake and Regulation-Eligible Feedstock

The group said that adding phase-two BNSI investment to volumes secured through phase-one IMIP will add 36,000 tons a year and lift total local nickel offtake rights to 65,000 tons.

Management expects BNSI nickel to qualify as material compliant with US foreign-entity-of-concern rules, raising the prospect of use in North American supply chains.

The Indonesian government's move to designate 71.47 hectares around the smelter as a bonded zone, simplifying customs and tax procedures and deferring or exempting value-added and import income taxes, is a working-capital factor as well. The checkpoint is whether internalising an input that accounts for half of costs proceeds as planned.

Parent-Level Businesses Geared to Rebounding Lithium and Metal Prices

For 2Q26 the company said that although sales volume fell quarter on quarter, lithium price increases began flowing into selling prices from the second quarter, delivering a meaningful profit gain.

In its 2025 briefing it stated that EcoPro Innovation, loss-making under low lithium prices, is expected to turn profitable in 2026 if the recent price trend holds, and that higher metal prices are improving the recycling market and EcoPro CNG's results.

In precursors, guidance pointed to roughly 90% year-on-year volume growth in 2026 and a target of lifting external sales from about 35% to around 70%. The bull case rests on the structure in which sustained metal prices increase the profit contribution of parent-level businesses.

Environmental Business Tied to the Semiconductor Cycle

For 2Q26 EcoPro HN reported revenue of KRW 51.5 billion, up 48% from a year earlier, and operating profit of KRW 5.8 billion, with the environmental plant business driving results as order realisation accelerated on the semiconductor upturn.

Earlier in 2026 the company said that expanding data-centre investment is lifting memory chip output, customer line additions are raising filter replacement demand and pulling installation schedules forward, and its two semiconductor-related businesses should grow more than about 50% year on year.

Because this profit stream correlates weakly with the battery cycle, it is cited as a dampener of group earnings volatility. Its absolute scale, however, remains a small share of consolidated revenue.

Bear factors

A Large Rights Offering and Dilution

Subsidiary EcoPro BM resolved on a roughly KRW 1.2 trillion rights offering with public subscription for forfeited shares, issuing 9,900,990 new shares, with proceeds earmarked as KRW 150 billion for facilities, about KRW 135 billion for operations and KRW 915 billion for acquiring securities of other entities.

The holding company said it would subscribe to 100% of its allocation and up to 120% in excess subscription if shares are forfeited, with its disclosed participation of about KRW 520 billion at the indicative price representing a maximum.

The process also carried regulatory risk: on 14 July 2026 the Financial Supervisory Service demanded a corrected filing, suspending the registration statement's effect, and warned that the overall issuance timetable including subscription dates could change.

Stalled Cathode Demand and Utilisation

Earnings at the key subsidiary are still early in recovery. In 2Q26, EcoPro BM posted revenue of KRW 576.7 billion and operating profit of KRW 18.0 billion, with both slightly lower as European EV demand stagnated.

The Hungarian plant has 54,000 tons of annual capacity against an output target of 10,000 tons this year, implying time is needed for utilisation to normalise.

Management also said further Hungarian expansion will be linked to new orders and pursued only where utilisation and economics are assured, so the pace of order wins will determine both the build schedule and fixed-cost burden.

Accounting-Driven Volatility in Net Income

Quarterly net results swing widely regardless of the operating trend. In 4Q25 an operating profit of KRW 46.8 billion accompanied a KRW 190.1 billion owner-attributable net loss, while in 1Q26 operating profit of KRW 56.4 billion came with KRW 210.4 billion of owner-attributable net income.

Management attributed this to derivative liabilities recognised on EcoPro Materials RCPS and PRS, with an opposite effect once share prices recovered. As long as financial contracts linked to subsidiary share prices remain outstanding, net income alone is a poor gauge of the underlying business.

Risk factors

Raw-Material Price Volatility

Lithium and nickel prices move selling prices and inventory valuation at the same time. Reuters, citing BMI and BNP Paribas, reported that a price correction is possible in the second half if the rebound restarts idled capacity.

Industry voices also noted that a lithium rebound may help inventory valuation but can become a cost burden unless demand recovers alongside. Should prices fall again, profits in lithium, recycling and smelting could reverse quickly.

Overseas Project Execution Risk

The Indonesian projects are exposed to construction timelines, ramp-up and natural disasters. In 2Q26, heavy rain and landslides in the GEN area reduced utilisation and natural-disaster damage at the Indonesian nickel smelter delayed some projects.

BNSI is a large build that broke ground last April with mass production targeted for the second quarter of next year; slippage at completion or trial production would push back its contribution to consolidated earnings. As a joint venture in which the company holds 39%, the pace of partner decision-making is another variable.

Financial Burden and Group Borrowings

Total liabilities stood at KRW 5.291 trillion at end-2025 with a debt-to-equity ratio of 117.9%, and in its 1Q26 briefing the company said consolidation of Green Eco Nickel lifted the consolidated ratio from 118% to 126%, while individual entities stayed at or below the low 100% range with cash of about KRW 900 billion.

In July 2026 NICE Investors Service flagged rising group borrowings as large investments continued during a prolonged battery-industry downturn that eroded profitability. If capital spending and profit recovery fall out of step, improvement in financial metrics could be delayed.

What to watch next

28 September to 2 October 2026
This is the listing and trading window for EcoPro BM subscription rights certificates. Their trading price and volume are the earliest read on market reception of the rights offering.
12 October and 15 to 21 October 2026
The schedule covers final pricing on 12 October, subscriptions by the employee stock ownership association, existing shareholders and the public from 15 to 21 October, and new share listing on 5 November. The holding company's actual cash outlay and the extent of forfeited shares will define its funding needs.
Late October to early November 2026
Third-quarter 2026 results and the earnings call. The test is whether the company's guidance for a second-half-weighted earnings profile and a gradual recovery in Indonesian smelter utilisation in the second half shows up in reported operating profit.
December 2026
Whether BNSI meets its stated schedule of completion and trial production by year-end once autoclave installation is finished. Confirmation of completion and trial runs is the leading indicator for 2027 operation and realisation of nickel offtake rights.
Second quarter of 2027
The targeted start of mass production at the BNSI smelter. The medium-term checkpoints are the actual utilisation of the 90,000-ton-per-year facility and how the 36,000 tons of annual nickel offtake corresponding to EcoPro's stake feeds into the cost structure.

Overall view

EcoPro recovered operating profitability, moving from a KRW 293.0 billion operating loss in 2024 to a KRW 213.8 billion operating profit in 2025 (6.3% margin), yet owner-attributable net income followed a separate path because of derivative valuation effects.

Quarterly momentum peaked at KRW 149.4 billion of operating profit in 3Q25 and eased to KRW 33.6 billion in 2Q26, with management describing the Indonesian smelter disruption as temporary and guiding to a second-half recovery.

Structurally, cathode materials set the revenue scale, parent-level businesses such as lithium, nickel and recycling are sensitive to metal prices, and the environmental unit moves on its own semiconductor cycle.

The bull case rests on 65,000 tons of annual nickel offtake rights, regulation-eligible feedstock and the profit contribution from lithium price pass-through; the bear case centres on the KRW 1.2 trillion subsidiary rights offering and dilution, stagnant European EV demand and the time needed to normalise Hungarian plant utilisation.

On valuation, large non-controlling interests and accounting-driven net income argue for tracking the operating profit trend and progress on raw-material integration rather than any single multiple.

Over the coming months the focal points are the October subscription outcome, evidence of utilisation recovery in third-quarter results, and the year-end BNSI completion and trial-production schedule.

This report organises publicly disclosed facts and market data for information purposes only and contains no buy or sell opinion or target price.

Sources

Korea Exchange (KRX) — Prices · Market Cap · Volume
FSS electronic disclosure system (DART) — Financial statements · Dividend filings

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Report written 2026-09-18 · Data as of 2026-09-17

This content is AI analysis of market data and web search results, provided for information only. It is not a solicitation or recommendation to invest. Investment decisions and their consequences are the investor's own responsibility. Data may be delayed or contain errors.