April 26, 2024

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[THE INVESTOR] LG Chem’s second-quarter earnings will not be as low as feared, but its profit will need more time to bounce back, said Samsung Securities on June 23. 

Its operating profit will fall 16.4 percent from the previous quarter to 666 billion won (US$585.80 million), higher than the recent market estimates of 650 billion won, forecast analyst Cho Hyeon-ryeol.

The price of major chemical products did fall dramatically but profitability of synthetic rubber remains solid and earnings from non-chemical divisions did not decline as much as expected, said the analyst. 

There are anticipations of improvement as electric vehicles get fully commercialized, but profit surge in the short term will be difficult. The company will not benefit from China’s introduction of new energy vehicles and it is investing in R&D of third-generation EV batteries, cautioned Cho.

By Hwang You-mee (glamazon@heraldcorp.com)