This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.
Factual Summary
EcoPro BM is a battery materials company that manufactures high-nickel NCA and NCMA cathode materials. It disclosed Q2 2026 (consolidated) revenue of KRW 576.7 billion (-26.0% YoY) and operating profit of KRW 18.0 billion (-63% YoY), marking a second consecutive profitable quarter (Herald Corporation, 2026-07-31). On 2026-06-30, the board resolved a KRW 1.1999 trillion rights offering (9,909,900 new shares, planned issue price KRW 121,200); following two rounds of correction requested by the Financial Supervisory Service, the securities registration statement's effective date was pushed back to 2026-08-25 (news.md, as received 2026-08-09). Of the proceeds, KRW 915.0 billion is earmarked for acquiring a stake in the BNSI nickel smelter in Indonesia (90,000-ton annual capacity, 39% stake held by EcoPro Group); the smelter was 39.2% complete as of 2026-08-11 and is targeting trial operation in December (Newspim, 2026-08-11).
Change Context Note
The Q2 2026 earnings decline was attributed to EV production adjustments by European and North American automakers, while volume for power applications (power tools, e-bikes) rose 28% quarter-over-quarter (Herald Corporation, 2026-07-31). Over the same period, domestic competitors POSCO Future M (operating profit KRW 26.7 billion, +3,351.2% YoY) and L&F (revenue KRW 885.0 billion, +70.2% YoY) both showed clear year-over-year improvement, making EcoPro BM the smallest of the three in both revenue and operating profit (competitors.md). The KRW/USD exchange rate stood at 1,417.53 as of the reference date (2026-08-14), with the won having strengthened 4.60% over the past month (tradingeconomics.com, 2026-08-14).
Business Overview
EcoPro BM manufactures and sells high-nickel NCA (nickel-cobalt-aluminum) and NCM (nickel-cobalt-manganese) cathode materials, and is reported to hold the No. 1 domestic market share in high-nickel NCA/NCMA cathode materials. Its largest customer, Samsung SDI, is reported to account for over 90% of shipments, though an accurate up-to-date (2026-08) figure is unavailable (business.md). Within the EcoPro Group, it forms a core link in the vertically integrated chain running from nickel ore (Indonesia) to precursor to cathode material.
The Hungary Debrecen plant (54,000-ton annual capacity) began phased line startup from Q2 2026; the Ontario, Canada CAM7 plant (150,000-ton annual capacity) is under construction targeting full operation in 2026; and progress at the Becancour, Quebec, Canada plant (a joint venture among EcoPro BM, SK On, and Ford, 45,000-ton annual capacity) is unavailable as of 2026-08 (business.md).
5-Year Financial Trend
| Period | Revenue | Operating Profit | Net Income | Debt Ratio |
|---|---|---|---|---|
| 2021 | KRW 1.4856 trillion | KRW 115.0 billion | KRW 97.8 billion | 139.2% |
| 2022 | KRW 5.3576 trillion | KRW 380.7 billion | KRW 272.7 billion | 126.8% |
| 2023 | KRW 6.9009 trillion | KRW 156.0 billion | KRW 54.7 billion | 172.7% |
| 2024 | KRW 2.7668 trillion | -KRW 34.1 billion | -KRW 58.5 billion | 118.7% |
| 2025 | KRW 2.5316 trillion | KRW 143.3 billion | KRW 91.6 billion | 142.2% |
| 1H 2026 | KRW 1.1821 trillion | KRW 39.0 billion | KRW 11.7 billion | 159.1% |
The 1H 2026 debt ratio (159.1%) rose again from year-end 2025 (142.2%) — likely reflecting expanded borrowing tied to the Hungary and Canada capacity expansions and the Indonesia BNSI investment, though the precise cause is unavailable (financials.md). Cumulative 1H 2025 figures are unavailable, so a year-over-year comparison could not be made.
Peer Comparison (Q2 2026, Consolidated)
| Company | Revenue (YoY) | Operating Profit (YoY) | Net Income |
|---|---|---|---|
| EcoPro BM (247540) | KRW 576.7 billion (-26.0%) | KRW 18.0 billion (-63%) | Unavailable |
| POSCO Future M (003670) | KRW 679.5 billion (+2.8%) | KRW 26.7 billion (+3,351.2%) | KRW 24.7 billion |
| L&F (066970) | KRW 885.0 billion (+70.2%) | KRW 20.8 billion (turned profitable) | KRW 52.9 billion |
As of Q2 2026, EcoPro BM has the smallest revenue and operating profit among the three peers and the largest YoY decline. LG Chem lowered its 2026 cathode material production target from 200,000 to 170,000 tons (2026-02-03), suggesting an industry-wide demand slowdown (competitors.md).
Valuation (Factual Multiples)
On a PBR basis, EcoPro BM (5.45x) is higher than POSCO Future M (4.89x, different reference date) and lower than L&F (7-8x range, as of 2026-06-15), though the differing reference dates mean this is not a strictly simultaneous comparison. EV/EBITDA is unavailable because depreciation and net debt figures are not present in confirmed system data (valuation.md). Following the planned listing of new shares (9,909,900 shares) on 2026-11-05, shares outstanding will increase by approximately 10.1%, diluting EPS and BPS; the figures above do not reflect this dilution effect.
Supply and Demand
| Category | Retail | Institutional | Foreign |
|---|---|---|---|
| 5-day cumulative (08-10 to 08-14) | +149,310 shares | -94,209 shares | -55,585 shares |
| 20-day cumulative (07-20 to 08-14) | +192,018 shares | +131,935 shares | -324,070 shares |
On a 20-day cumulative basis, foreign investors were net sellers (-324,070 shares), but turned to net buying for three consecutive sessions in the most recent period (08-12 to 08-14) (based on web research via alphasquare.co.kr; primary cross-checking against official KRX data was not completed, so this figure is marked as an estimate). Short interest balance: 4,040,732 shares (4.13% of float, as of 2026-08-12). Margin loan balance, absolute foreign holding volume, and foreign ownership limit utilization are unavailable (flow.md).
Governance and Capital Structure
Source: WiseReport shareholding status (reconstructed from DART disclosures), with reference dates varying by holder (2022-06 to 2025-11). Primary cross-checking against the original DART filing text was not completed due to access constraints (governance.md).
| Date | Event |
|---|---|
| 2026-06-30 | Board resolves rights offering (9,909,900 new shares) |
| 2026-07-14 | FSS requests correction of securities registration statement |
| 2026-07-24 | First corrected registration statement submitted |
| 2026-08-07~09 | Voluntary re-corrected registration statement submitted (offering size maintained at KRW 1.2 trillion) |
| 2026-08-25 | Securities registration statement scheduled to take effect |
| 2026-09-04 | New share allotment record date |
| 2026-10-12 | Issue price scheduled to be finalized |
| 2026-10-15~21 | Subscription period |
| 2026-11-05 | New shares scheduled to list |
The company operates under a co-CEO structure of Choi Mun-ho (President) and Kim Jang-woo (Vice President and CFO) (Electronic Times, 2024-12-17). Founder Lee Dong-chae's direct shareholding ratio, detailed equity stakes of group sub-subsidiaries, and the full text of the large shareholding report (receipt no. 20260403000544) are unavailable due to access constraints (governance.md).
Macro Factors
| Factor | Value as of Reference Date | Transmission Channel |
|---|---|---|
| KRW/USD exchange rate | 1,417.53 (2026-08-14, monthly -4.60%) | Reduces KRW-converted value of dollar-denominated export revenue, partly offset by lower raw material import costs |
| Lithium carbonate (China) | approx. CNY 148,000/ton (2026-08-12, +2.45%) | Selling prices are linked to metal prices — passed through with a 1-2 month lag; a factor for inventory valuation gains when holding lower-cost inventory |
| Nickel (LME) | approx. $17,000-17,400/ton (late July-early August 2026) | High exposure to high-nickel products means nickel price direction has a relatively large effect on average selling price and inventory valuation gains/losses |
| US IRA 45X / FEOC | FEOC requirements take full effect from 2026; credit sunset moved up from 2032 to 2031 | Exclusion of Chinese-origin materials creates potential spillover benefits for Korean supply chains, alongside rising supply chain certification costs |
| Bank of Korea base rate | 2.75% (raised 2026-07) | Increases KRW funding costs and interest expense burden tied to overseas capacity expansion |
| Global EV sales | 9.6 million units in 1H 2026 (YoY +2%, Q2 +35% QoQ) | Europe is driving growth — the top-level demand driver behind increased cathode material orders via rising cell-customer utilization rates |
An up-to-date (2026-08) cobalt price figure and the precise contractual breakdown of cost and revenue exposure are unavailable (macro.md).
Risk Factors
The rights offering's securities registration statement underwent three rounds of correction following the FSS's correction request, pushing the effective date back to 2026-08-25. After the new shares list (2026-11-05), shares outstanding will increase by approximately 10.1%, resulting in scheduled dilution of ownership stakes, EPS, and BPS.
The largest customer, Samsung SDI, is reported to account for over 90% of shipments (an accurate up-to-date figure is unavailable). Customer portfolio diversification is reportedly underway, but official confirmation such as contract signings is unavailable.
Web research estimates suggest North America revenue could fall sharply from approximately KRW 1.4 trillion in 2023 to approximately KRW 69.9 billion in 2026, but this has not been confirmed against primary disclosures. The SK On-Ford joint venture plant in Quebec, Canada has a history of three prior construction suspensions, and its status as of 2026-08 is unavailable.
The debt ratio stood at 159.1% at end-1H 2026, up from 142.2% at end-2025, and the 1H 2026 net margin (0.99%) is lower than the FY2025 annual figure (3.62%).
As of Q2 2026, the company ranks smallest among the three domestic cathode material makers in both revenue and operating profit, with the largest YoY decline. LG Chem lowered its 2026 cathode material production target.
The Hungary Debrecen plant's local subsidiary is still posting losses, as fixed costs are incurred ahead of early-stage operations. The precise start-up timing and profit contribution timeline for the Canada CAM7 plant are unavailable.
Recent News Timeline
| Date | Details |
|---|---|
| 2026-08-11 | Held investor IR briefing on the Indonesia BNSI nickel smelter investment; construction 39.2% complete, targeting trial operation in December |
| 2026-08-09 | Voluntarily corrected rights offering registration statement submitted to FSS, offering terms (KRW 1.2 trillion) maintained, effective date pushed to 08-25 |
| 2026-08-07 | Voluntary re-corrected rights offering registration statement received by FSS |
| 2026-07-31 | Q2 2026 earnings disclosed (revenue KRW 576.7 billion, operating profit KRW 18.0 billion) |
| 2026-07-24 | First corrected rights offering registration statement submitted |
| 2026-07-23 | Core nickel-extraction equipment delivered to the Indonesia nickel smelter |
| 2026-07-14 | FSS requests correction of rights offering securities registration statement |
| 2026-06-30 | Board resolution on rights offering (KRW 1.2 trillion) disclosed |
| 2026-04-29~30 | Q1 2026 earnings disclosed (revenue KRW 605.4 billion, operating profit KRW 20.9 billion) |
Reported Q4 2025 revenue and operating profit figures varied across outlets (e.g., KRW 585.0 billion vs. KRW 499.2 billion in revenue), and the reason is unavailable (news.md). Media coverage of brokerage target prices and investment opinions falls outside the scope permitted under the Capital Markets Act and has not been reflected in this report.
Theme Relevance
Fact Highlights
Q2 2026 (consolidated) revenue of KRW 576.7 billion (-26.0% YoY) and operating profit of KRW 18.0 billion (-63% YoY), marking a second consecutive profitable quarter
On 2026-06-30, the board resolved a KRW 1.1999 trillion rights offering (9,909,900 new shares, planned issue price KRW 121,200, new share listing scheduled 2026-11-05)
KRW 915.0 billion of proceeds earmarked for acquiring a stake in the Indonesia BNSI nickel smelter (90,000-ton annual capacity, 39% group stake), 39.2% construction complete as of 2026-08-11
Debt ratio at end-1H 2026 (2026-06-30) stood at 159.1%, up from 142.2% at end-2025
As of the analysis date (2026-08-14), PBR of 5.45x (based on BPS of KRW 21,430) and PER (based on FY2025 annual results) of 124.7x
Largest shareholder EcoPro (holding company) holds a 40.83-40.84% stake; 12 related parties hold a combined 45.48% (WiseReport, as of Oct-Dec 2025)
Generated by FomoLog Agent · Data sources: Korea Exchange (KRX) · NASDAQ · DART · SEC EDGAR
This is not investment advice. FomoLog provides factual summaries and post-hoc price-change context only. Investment decisions and their outcomes are solely the responsibility of the investor.