EcoPro stocks hit 52-week high on expectations for growth in EV demand

EcoPro Co. logo [Courtesy of EcoPro]

Shares of EcoPro Co. and EcoPro BM Co. that are engaged in the manufacturing of cathode materials essential for the production of secondary batteries in electric vehicles (EVs), have each reached their 52-week high on the back of growing expectations for a surge in EV demand.

Shares of EcoPro soared 25.56 percent to 727,000 won ($551) on Monday as of 12:25 p.m., and those of its subsidiary EcoPro BM 13.98 percent to 293,500 won. The two stocks are leading the secondary battery stock rally.

EcoPro gained 500 percent from earlier on in the year and EcoPro BM 192 percent.

The stocks are gaining ground on rising demand for EVs and expected benefits from the U.S. Inflation Reduction Act (IRA).

EcoPro is a holding company with a number of subsidiaries including EcoPro BM. Analysts warn that the surge in the holding company’s stock price may be a sign of overheating.

“EcoPro is a holding company that manages its subsidiaries and makes investment decisions,” said Chang Jung-hoon, an analyst at Samsung Securities Co. “Holding companies are often discounted in the market but EcoPro is valued 20 percent higher as of the end of March.”