Industrials
Korean IPO aiming to raise ~US$690m - WCP is a leading maker of separators which are key materials used in EV batteries. While sales growth has been spectacular, its top three customers accounted for 89% of revenue in 1Q22, and only one of them has shown consistent growth. Prices have also been on a downward trend and this is expected to continue despite the market moving into a supply deficit by 2024. OCF has mostly been negative and debt has been increasing. Additional concerns relate to WCP’s parent company (Japan listed W-Scope) who has faced going concern issues and is currently involved in a patent litigation for some of its products.
Edition: 140
- 22 July, 2022