KOSDAQBatteries247540

Ecopro BM

₩115,700▲ 0.87%2026-10-02 close

Market Cap

₩11.3T

Turnover

₩38.3B

Volume

330,000 shares

Shares out.

97.8M

PER

313.6×

PBR

5.8×

EPS

₩338

Dividend Yield

0.09%

PER, EPS, PBR and BPS are calculated in-house from the last 4 quarters (2025Q3–2026Q2) · Dividend yield is based on ₩100 per share · Prices as of the 2026-10-02 close

Report overview

Hungary Ramp and KRW 1.2tn Rights Issue: Margin Recovery Is the Test

After returning to a full-year operating profit in 2025, margins thinned again in the first half of 2026, leaving the Hungarian plant ramp-up and the KRW 1.2tn rights issue funding Indonesian nickel integration as the key swing factors.

1
2025 revenue was KRW 2,531.6bn with operating profit of KRW 143.3bn (5.7% margin), a swing from the KRW 34.1bn operating loss in 2024, but quarterly operating profit narrowed again to KRW 20.9bn in 1Q26 and KRW 18.0bn in 2Q26.
2
The company attributed the weak 2Q26 to lower electric-vehicle volumes in Europe and North America, noting that power-application shipments such as tools and e-bikes rose 28% quarter on quarter and cushioned results.
3
The Debrecen plant in Hungary (54,000 tons per year) started its first line in June 2026 with a second line slated for September, and management guided to roughly 10,000 tons of output this year and 30,000 tons next year.
4
About 76% of the KRW 1.2tn rights offering is earmarked for equity investments including the BNSI nickel smelter in Indonesia, pairing a cost-integration rationale with roughly 10% share-count dilution.
5
While rivals broaden into lithium iron phosphate cathodes for energy storage, the company is prioritizing its nickel-rich portfolio and cost reduction, a strategic divergence cited as a variable for the pace of earnings recovery.

Business structure

EcoPro BM is a battery-materials maker centered on nickel-rich ternary cathodes (NCA and NCM), selling mainly to large domestic battery cell makers, with holding company EcoPro as its largest shareholder.

EcoPro holds a 40.83% stake as the largest shareholder, and major domestic battery manufacturers are the principal revenue sources.

At group level, the company has built full-cycle vertical integration spanning lithium hydroxide processing, precursor manufacturing, cathode production and battery recycling to secure cost competitiveness.

End demand is dominated by electric-vehicle batteries, but power-application volumes for tools and e-bikes rose 28% quarter on quarter in 2Q26, which the company linked to expanding artificial-intelligence chip facilities and replacement demand for e-bikes in Southeast Asia.

Production sites span domestic plants in Pohang and Ochang plus Europe, where the Hungarian plant has annual capacity of 54,000 tons and the first line at Debrecen began operating in June 2026 with a second line planned for the second half.

In value segments, the company operates a 4,000-ton fourth-generation lithium iron phosphate line in Ochang and is developing a precursor-free third-generation product free of Chinese inputs, while saying additional investment is under in-depth review given the sharp rise in lithium prices and external policy volatility.

For next-generation materials, it has secured proprietary process technology in sulfide-based solid electrolytes, runs a 40-ton-per-year pilot plant, and its output has passed quality validation by major battery makers, while cobalt-free manganese-rich cathodes have entered final validation aimed at mass production.

Competition takes the form of a four-company domestic cathode landscape alongside L&F, POSCO Future M and LG Chem, and the company is choosing to add raw-material integration on top of its nickel-rich technology base.

Segment revenue splits are not verifiable in public disclosures and are therefore not quantified here; in practice the business remains close to a single-product cathode structure.

Earnings trend

Quarterly revenue · Operating profit

₩779.7B₩49B25Q2₩625.1B₩50.5B25Q3₩497B₩41.6B25Q4₩605.4B₩20.9B26Q1₩576.7B₩18B26Q2

RevenueOperating profit

Annual revenue · Operating profit

₩5.4T₩380.7B2022₩6.9T₩156B2023₩2.8T-₩34.1B2024₩2.5T₩143.3B2025

RevenueOperating profit

Quarterly results · Last 5 quarters
Quarter	Revenue	Operating profit	Op. margin
2025Q2	₩779.7B	₩49B	6.3%
2025Q3	₩625.1B	₩50.5B	8.1%
2025Q4	₩497B	₩41.6B	8.4%
2026Q1	₩605.4B	₩20.9B	3.5%
2026Q2	₩576.7B	₩18B	3.1%

Annual results
Year	Revenue	Operating profit	Net income (parent)	Op. margin	ROE	Debt-to-equity
2022	₩5.4T	₩380.7B	₩232.3B	7.1%	17.0%	126.7%
2023	₩6.9T	₩156B	-₩8.7B	2.3%	−0.6%	172.7%
2024	₩2.8T	-₩34.1B	-₩96.5B	−1.2%	−5.6%	118.7%
2025	₩2.5T	₩143.3B	₩39.4B	5.7%	2.3%	142.2%

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 earnings path mirrors the amplitude of the cycle.

From 2022 revenue of KRW 5,357.6bn and operating profit of KRW 380.7bn (7.1% margin), 2023 revenue rose to KRW 6,900.9bn while operating profit collapsed to KRW 156.0bn (2.3%), and 2024 brought revenue of KRW 2,766.8bn with a KRW 34.1bn operating loss and a KRW 96.5bn net loss attributable to owners.

In 2025, revenue shrank further to KRW 2,531.6bn yet operating profit turned positive at KRW 143.3bn (5.7%) with owners' net profit of KRW 39.4bn.

Within 2025, however, margins were strongest in the third quarter (operating profit KRW 50.5bn on revenue of KRW 625.1bn, 8.1%) and fourth quarter (KRW 41.6bn on KRW 497.0bn, 8.4%), and brokerage analysis flagged Indonesia-related investment gains in the second and third quarters of 2025 and a fixed-asset useful-life change effect in the fourth quarter as one-off items (IBK Investment & Securities report).

Consistent with that, operating profit fell to KRW 20.9bn in 1Q26 (revenue KRW 605.4bn, 3.5%) and KRW 18.0bn in 2Q26 (KRW 576.7bn, 3.1%), while owners' net result swung to a KRW 2.0bn loss in the second quarter. First-half 2026 totals were revenue of KRW 1,182.1bn and operating profit of KRW 39.0bn.

On causes, the company pointed to lower electric-vehicle volumes in Europe and North America while saying non-EV demand from artificial-intelligence chip facilities and power tools supported results, and Samsung Securities said in a July 31, 2026 report that second-quarter results missed the consensus operating profit of KRW 24.3bn (FnGuide), estimating shipments down 10% quarter on quarter at 14,909 tons, with roughly KRW 5bn of depreciation from the new Hungarian plant and a loss from the Indonesian smelting investment weighing on the quarter.

Operating cash flow fell from KRW 670.1bn in 2024 to KRW 214.7bn in 2025, and the debt-to-equity ratio rose from 118.7% to 142.2%, evidencing the financial load of the investment phase.

In short, the 2025 profit recovery contained one-off elements, and first-half 2026 figures show end-demand and fixed costs pressing on margins again.

Industry analysis

The cathode industry's center of gravity still tilts toward lithium iron phosphate. According to SNE Research, of 4.95m tons of total cathode shipments in 2025, lithium iron phosphate accounted for 3.47m tons, or about 72%.

On costs, by contrast, analysis points to critical mineral and lithium prices rebounding in the first half of 2026, moving cathode makers into a profitability recovery phase, with high-power nickel-rich demand also rising again on the spread of humanoid robots, urban air mobility and drones.

Korea Mineral Resource Information Service data show lithium rising from USD 10 per kilogram in early last year to USD 20.15 as of August 31, 2026, more than doubling.

Competitive positioning diverged clearly in 2Q26: POSCO Future M and L&F posted operating profits of KRW 26.7bn and KRW 20.8bn respectively, while EcoPro BM underperformed as its share in the United States and European electric-vehicle markets shrank.

Strategies also differ: L&F and POSCO Future M plan to expand lithium iron phosphate portfolios, whereas EcoPro BM focuses on improving profitability in ternary cathodes, and some observers worry its recovery could lag because entering the fast-growing energy-storage lithium iron phosphate market is comparatively difficult for the company.

The regulatory backdrop is a supportive factor, as European supply-chain rules such as the Critical Raw Materials Act and the Industrial Accelerator Act are expected to lift demand for European-made cathodes, while the United States Inflation Reduction Act and foreign entity of concern rules have raised entry barriers for Chinese players in North America, a condition cited as favorable for the four Korean suppliers.

The cycle position therefore combines improving signals from mineral prices and European demand with the drag of stalled electric-vehicle sales and low utilization.

Outlook

Management's near-term framing is cautious.

Chief Executive Kim Jang-woo said on the 2Q26 earnings call that sales stagnation would persist in the third quarter due to the North American electric-vehicle slowdown and model transitions at European automakers, while expecting partial offsets from new model launches and the wider ramp at the Hungarian plant.

He also said expanded Hungarian output and operational efficiency should bring the company into a quarterly profit structure in the second half.

On production, the company said the Hungarian plant would add a second line in September after starting one line, guiding to about 10,000 tons this year and 30,000 tons next year, and expecting volumes to keep rising as European rules increase the need for locally made cathodes.

On shipment guidance, IBK Investment & Securities noted that the company guided to 30% year-on-year growth in 2026 cathode shipments while the broker itself estimated 22.9% growth given realistic market conditions.

Raw-material integration hinges on 2027: the BNSI project, cited with a 39% stake, 90,000 tons of capacity and 35,100 tons of offtake, is expected to start up in the second quarter of 2027, and the company expects meaningful earnings contribution once the smelter runs.

The funding calendar was disclosed as an indicative issue price of KRW 121,200, final pricing on October 12, existing-shareholder subscription on October 15-16, public offering on October 20-21 and new share listing on November 5, with proceeds allocated as KRW 765bn to the BNSI special purpose vehicle, KRW 150bn for Hungarian operations and remaining capex, KRW 150bn for domestic facilities and routine investment, and KRW 135bn for working capital including raw materials.

On new products, the plan is to optimize mass-production processes from the 40-ton pilot plant to support early commercialization of all-solid-state batteries in 2027, and the company said the earliest mass-production timing for solid electrolytes is expected to be 2027.

All of these timelines presume customer orders and validation, so actual revenue contribution needs checking against quarterly disclosures.

Valuation

PER

313.6×

PBR

5.8×

ROE

2.6%

EPS

₩338

BPS

₩18,376

Dividend per share

₩100

The bottom line swung from a loss in 2024 to a profit in 2025, but the absolute profit level remains far from the 2022 peak, and the operating margin slipped to the 3% range in the first half of 2026.

As a result, the price-to-earnings multiple based on the latest four quarters sits well above the upper end of the band in which this stock has historically traded, and the valuation also embeds a substantial premium to net assets.

A dividend is paid, but the yield is only symbolic and below market averages, so the valuation debate rests on the pace of profit recovery rather than income. On top of that, the rights offering will issue new shares equal to 10.1% of the existing share count, adding dilution to per-share metrics.

Market views are split: iM Securities said in an early July 2026 report that it maintained a Hold rating and suspended its 12-month target price.

Ultimately, what would justify the current multiple is whether Hungarian utilization and nickel integration convert into actual margin, and that will be visible in earnings disclosures from the second half of 2026 onward.

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

Local Production Base Secured in Europe

The Hungarian plant has annual capacity of 54,000 tons with expected output of about 10,000 tons this year and 20,000-30,000 tons next year, and the company expects volumes there to grow over the medium term thanks to European Union policies excluding Chinese supply.

Management said in-region cathode demand is rising because of European regulatory policy, and it plans to review capacity expansion in step with additional orders from new customers.

It is also negotiating with customers to supply a set proportion of Hungarian contract volumes from the Pohang plant, an effect the company expects to appear across 2026 and 2027. Whether utilization at existing domestic lines improves therefore depends on the outcome of those talks.

Attempt to Rebuild Cost Structure via Nickel Integration

EcoPro and EcoPro BM will take a combined 39% stake in the BNSI smelter in the IGIP complex on Sulawesi, Indonesia, as major shareholders, and the 90,000-ton-per-year facility is expected to secure roughly 35,000 tons of annual long-term purchase volume for them.

Including the first-phase IMIP project, group nickel entitlements would rise to about 65,000 tons once the BNSI investment completes. The company frames the nickel intermediate investment as maximizing cost competitiveness in ternary cathodes and strengthening its ability to win customer orders.

Since nickel is a large share of nickel-rich cathode costs, successful integration could reshape the margin structure itself.

Non-EV Demand and Next-Generation Material Pipeline

The company said power-application volumes rose 28% quarter on quarter on expanding artificial-intelligence chip facilities and e-bike replacement demand in Southeast Asia, supporting results, and it plans in the second half to address European in-region regulatory demand using the Hungarian plant along with growth in artificial-intelligence chip and data-center construction.

In next-generation materials, it operates a 40-ton-per-year pilot plant with proprietary sulfide solid-electrolyte process technology and plans to share development roadmaps and deepen strategic cooperation with domestic cell makers targeting early commercialization next year.

The Ministry of Trade, Industry and Energy selected five companies including EcoPro BM under its supplier program, and the company leads the all-solid-state project developing high-performance solid electrolytes. The point to verify is whether non-EV demand becomes a durable share of revenue.

Bear factors

Dilution and Debate over Large Equity Raise

The KRW 1.2tn rights offering issuing 9.901m common shares equals 10.1% of the existing share count.

An iM Securities report noted the share price fell around 20% on the alternative trading venue after the disclosure, reading it as investors pricing near-term dilution and uncertain investment payback ahead of long-term growth.

One analyst argued the core concern is not whether the offering succeeds but whether aggressive investment funded by a large raise is appropriate while industry uncertainty persists, adding that a big equity raise amid low earnings visibility evokes both financial burden and payback risk. Final pricing and subscription results will fix the scale of dilution.

Gap in Energy Storage and Lithium Iron Phosphate

Some observers expect EcoPro BM's recovery to lag because it is comparatively hard for the company to enter the faster-growing lithium iron phosphate market for energy storage.

By contrast, POSCO Future M recently agreed on large-scale long-term lithium iron phosphate cathode supply with a leading domestic battery maker, and L&F shipped trial output and plans full mass production from late in the third quarter.

The company said it had been weighing an investment decision for North American energy-storage lithium iron phosphate but is reconsidering because of local policy variables and overheated price competition. The core bear logic is that rivals may capture the new demand pool first.

Underlying Margin Exposed After One-Offs Fade

Against operating margins in the 8% range in the third and fourth quarters of 2025, the ratio fell to 3.5% in 1Q26 and 3.1% in 2Q26, with owners' net result turning negative in the second quarter.

IBK Investment & Securities projected an annual operating margin of only about 1.1% once Indonesia-related gains from the second and third quarters of 2025 and the fourth-quarter useful-life change effect are stripped out.

Management said existing nickel-rich cathode plants will find it hard to recover from weak utilization without an improvement in market conditions. Combined with fixed costs from the early Hungarian ramp, the recovery path could be slower than hoped.

Risk factors

Financial and Liquidity

The debt-to-equity ratio rose from 118.7% in 2024 to 142.2% in 2025, while operating cash flow fell from KRW 670.1bn to KRW 214.7bn.

The company said the put option on convertible bonds issued in 2023 falls due in July 2026, and that it plans to use roughly KRW 500bn of available liquidity to sequentially redeem KRW 330bn of perpetual bonds issued in 2024 from the second half of 2026 through next year.

It also said it is reviewing various funding options including external borrowing and capital raising, alongside maximizing internal cash generation, for potential additional Hungarian investment and existing debt repayment. With investment and repayment overlapping, cash-flow management is a central item to monitor.

Investment Execution and Project Delivery

The BNSI smelter is still under construction. As of the end of July, construction progress stood at 39.2% and equipment installation at 13.8%, and the investment format, whether equity contribution or lending, had not been finalized.

Funds are to be injected into a special purpose vehicle for the stake acquisition, but the company said multiple forms such as equity or loans are possible and the specific structure is not yet fixed.

Analysts also note that meaningful earnings impact from cheaper nickel requires time after actual start-up, whereas dilution can be reflected immediately.

End Demand and Policy

Second-quarter 2026 revenue of KRW 576.7bn was down from KRW 779.7bn a year earlier, with the company citing lower electric-vehicle volumes in Europe and North America. Management expects sales stagnation to continue in the third quarter given the North American slowdown and model transitions at European automakers.

The cathode active material business is exposed to slower electric-vehicle market growth and the early termination of United States Inflation Reduction Act tax credits, and the company itself cited North American policy variables as a reason to reconsider an investment decision. If policy and automaker electrification pace wobble together, utilization recovery could be delayed.

What to watch next

September 2026
Whether the planned start-up of the second line at the Hungarian plant actually occurs. It is the first checkpoint for the path to the roughly 10,000-ton annual output target and the pace at which early fixed-cost burdens ease.
October 12 to November 5, 2026
The schedule of final pricing on October 12, existing-shareholder subscription on October 15-16, public offering on October 20-21 and new share listing on November 5. Subscription rates and the final price will fix both the amount raised and the increase in share count.
Late October to early November 2026
Third-quarter results and the earnings call. It is the venue to check progress on the target of entering a quarterly profit structure in the second half and turning the Hungarian unit profitable, along with shipment volumes and any margin recovery.
Fourth quarter 2026 to first half 2027
Quarterly updates to BNSI smelter construction progress, which stood at 39.2% at end-July, and finalization of the investment structure that remains undecided. With start-up expected in the second quarter of 2027, any slippage would shift the timing of cost benefits.
During 2027
Whether 2027, cited by the company as the earliest mass-production timing for solid electrolytes, materializes, and whether orders are confirmed for cobalt-free manganese-rich cathodes now in final validation. These would be the first signs of new products converting into revenue.

Overall view

EcoPro BM's last four years traced a wide arc, from a 7.1% operating margin in 2022 to 2.3% in 2023, an operating loss in 2024 and a 5.7% recovery in 2025.

Yet with operating profit of KRW 20.9bn in 1Q26 and KRW 18.0bn in 2Q26 and owners' net result turning negative in the second quarter, the reported figures now support the argument that much of the 2025 recovery was tied to one-off items.

The bull case rests on the Debrecen plant's in-region European position, nickel integration via BNSI in Indonesia, and diversification into power applications plus all-solid-state and manganese-rich materials.

The bear case rests on a large rights offering that lifts share count by around 10%, the relative gap in the energy-storage lithium iron phosphate market, and low utilization at existing domestic lines.

Industry commentary has also suggested that with the electric-vehicle battery market recovering led by Europe, a genuine turnaround is being discussed, and that normalized utilization on the back of North American energy-storage demand could bring both revenue growth and margin improvement.

What must ultimately be verified are three execution variables, namely Hungarian utilization, the rights offering outcome and BNSI construction progress; until those results land, valuation debate rests on expectation rather than fact. This report is for information purposes and contains no buy or sell recommendation 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 2026-09-05 · Data as of 2026-09-04

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.