Chunbo (278280 KQ): Hold: 2Q26 preview – limited US ESS exposure

研报英文原文证据摘录

Chunbo (278280 KQ): Hold: 2Q26 preview – limited US ESS exposure

de of earnings contribution is quite limited on 86000.00

mid/upstream material names. The cell makers are better positioned to benefit as

they can leverage on US local production, which is eligible for advanced 55500.00

manufacturing credits (AMPC) boosting margins and competitiveness. We think 25000.00

07/25 01/26 07/26

Chunbo will have limited exposure towards North America ESS in the upcoming Target price: 35000.00

quarters. That said, our view on the company would depend on whether its products High: 79400.00 Low: 31700.00 Current: 33500.00

Source: LSEG IBES, HSBC estimates

start penetrating US ESS LFP batteries, which would result in meaningful volume

growth and revenue contribution.

Yushin Park*

Analyst, Korea Industrials & Utilities

Earnings estimate changes. We lower our 2026/27/28 sales estimates by The Hongkong and Shanghai Banking Corporation

2.2%/9.7%/12.5%, respectively, as the company’s products are currently not used for Limited, Seoul Securities Branch

yushin.park@kr.hsbc.com

US LFP ESS, which is the key growing segment for Korea Battery supply chains. +82 2 3706 8756

We think that the high fixed cost burden is likely to continue in the upcoming quarters.

* Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is

Maintain Hold, lower target price to KRW35,000 (from KRW55,000). We continue to not registered/ qualified pursuant to FINRA regulations

use a PE multiple-based valuation methodology to value the stock. We apply our new

target PE multiple of 33.8x (from 44x) derived from using the Korean cathode peer

group’s average PE multiple during 2019-2020 before the capacity expansion and

earnings increase. We apply this to our 2027-28e average EPS estimate of KRW1,041