EcoPro’s stock price tops $766 despite investor warnings

EcoPro B&M Co. [Courtesy of EcoPro B&M]

EcoPro Co., a South Korean manufacturer of electric vehicle battery materials, has seen its stock surpass 1 million won ($766), making it the most expensive share in Korea.

On Monday morning, EcoPro broke its own record by surpassing the 1 million won threshold during trading hours, reaching an all-time high.

Analysts attribute the rise in EcoPro’s stock price to not only the high interest in battery materials but also the impact of short covering by short-selling investors. As of July 5, the short-selling balance for EcoPro was 1.24 trillion won. Its subsidiary EcoPro B&M Co. has the highest short-selling balance among listed companies in Korea, reaching 1.28 trillion won.

Investors are warned to be wary of the large discrepancy between brokerage firms’ analysis and stock prices. The average target price set by domestic securities firms for EcoPro is only 425,000 won. Many securities firms are recommending investors to sell their holdings in the company.