EcoPro BM stocks plunge amid Q4 operating losses concern

[Courtesy of EcoPro BM]

South Korean secondary battery material manufacturer EcoPro BM Co. saw its stock prices fall on Monday, amid speculation of the company’s operating losses in the fourth quarter of 2023 ahead of the fourth-quarter earnings call.

As of 9:10 a.m. on Monday, EcoPro BM stocks traded at 264,000 won ($197.72), or a 5.21 percent decrease from the closing price on the previous trading day.

EcoPro Co. and L&F Co., who are ranked second and third in Kosdaq market capitalization after EcoPro BM, both recorded declines at 3.60 percent and 3.53 percent respectively.

The decline in Kosdaq’s large-cap secondary battery stocks is attributed to the anticipated poor performance in the fourth quarter of 2023 or earnings shocks that were already announced.

L&F announced during the previous week that its 2023 operating loss estimates totaled 220.1 billion won, indicating a shift to losses compared to the previous year. The company explained that inventory valuation losses expanded due to the decline in lithium prices, and profitability worsened thanks to lower electric vehicle demand.

Market analysts estimate that EcoPro BM’s fourth-quarter results are also likely to show operating losses for similar reasons. Samsung Securities Co. and Eugene Investment & Securities Co. released their projections, suggesting that EcoPro BM‘s fourth-quarter losses could be in the range of 400 billion won.