Ecopro BM: Thin Profits and High Multiples as a Rights Offering Advances

Thesis

The data supports a picture of a battery materials company that is profitable again after a loss-making 2024 but only modestly so. Trailing operating margin is 5.7% and net margin is 1.9%, so the P/E of 258.5 mainly reflects small earnings rather than strong profit growth. The share price is up 4.8% over one month and 2.9% over one year, but down 3.5% over three months. It trades well below its 52-week high of ₩260,000 and about 31.0% above its low of ₩88,300. Several items are not available in the data, including investor flows, foreign ownership, short balance, EV/EBITDA and news headlines, so we cannot say how investors are positioned. The rights offering filings suggest the company is raising capital, but the data does not state the amount or purpose.

Business overview

Ecopro BM is a KOSDAQ-listed battery company (code 247540), founded on 2016-05-02 and listed on 2019-03-05. It has 97,801,344 listed shares and is led by co-CEOs Choi Moon-ho and Kim Jang-woo. Revenue was ₩1.5T in 2021, rose to ₩5.4T in 2022 and peaked at ₩6.9T in 2023. It then fell to ₩2.8T in 2024 and ₩2.5T in 2025. Among the peers listed, LG Energy Solution (₩93.1T) and Samsung SDI (₩45.2T) are larger by market cap, and POSCO Future M (₩15.7T) is somewhat larger too.

Financial analysis

These figures come from filed financial statements (DART). Trailing revenue to H1 2026 was ₩2.3T, operating income ₩131B and net income ₩43.7B, giving an operating margin of 5.7%, a net margin of 1.9% and ROE of 2.5%. For 2025, revenue fell 8.5% to ₩2.5T, operating income was ₩143B and net income ₩39B. In 2024 the company posted an operating loss of ₩34B and a net loss of ₩96.5B. The best earnings year shown is 2022, with operating income of ₩381B, net income of ₩232B and ROE of 24.3%. On the balance sheet, liabilities to equity are 159.1%, cash is ₩467B and borrowings are ₩1.8T. Trailing free cash flow is negative at ₩87.5B.

Valuation

The current P/E is 258.5, P/B is 6.3, P/S is 4.9 and the dividend yield is 0.5%. Enterprise value is ₩12.6T. At the end of 2025, the P/E was 364.2 and the P/B was 8.3, so both multiples have eased since then, though the P/E remains very high. Earlier year-end multiples are not available. Among peers, Samsung SDI has a P/E of 1,200.9 and P/B of 1.9, POSCO Future M a P/E of 353.3 and P/B of 3.7, and LG Energy Solution a P/B of 4.2 with no P/E. L&F and Ecopro Materials have no multiples in the data. Ecopro BM's P/B of 6.3 is above those of the peers with data.

Catalysts

• Filings dated 2026-10-13 show the final issue price for the rights offering, an amended prospectus and set registration terms, so the offering is moving toward completion.
• An Advance Notice of Earnings Results Disclosure was filed on 2026-10-13, pointing to upcoming results.
• Investor relations events were filed for 2026-10-01 and 2026-10-13, giving management chances to address investors.
• Several insider shareholding reports (2026-10-08 and 2026-10-12) and a 5%+ holding report on 2026-10-08 show ownership changes worth watching.

Risks

• Earnings are thin, with a 1.9% net margin and a P/E of 258.5, so the valuation depends on a large profit recovery that the data does not confirm.
• Revenue has fallen from ₩6.9T in 2023 to ₩2.5T in 2025, and trailing revenue of ₩2.3T has not yet shown a rebound.
• Trailing free cash flow is negative at ₩87.5B while borrowings are ₩1.8T, and liabilities are 159.1% of equity.
• The rights offering may dilute existing shareholders, though the size and terms are not shown in the data.
• Investor flows, foreign ownership, short interest and news are not available, which limits visibility on market sentiment.

Closing view

The data shows a company recovering from a 2024 loss but still earning small profits on a revenue base far below its 2023 peak. Multiples have eased from year-end 2025 levels yet remain high compared with the earnings and with most peers shown. The rights offering and upcoming earnings notice are the main near-term items in the filings, but missing data on flows, ownership and offering size leaves important questions open. This report is informational and offers no recommendation.

Model estimate of fair value

The valuation model has no estimate for this company yet (not enough data, or no positive value with the base case).

Report history

1. Oct 13, 2026InitiationEcopro BM: Thin Profits and High Multiples as a Rights Offering Advances