April 25, 2024

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[THE INVESTOR] LG Chemical’s second-quarter operating profit will satisfy market expectations, said KB Investment and Securities on June 21, maintaining a “buy” recommendation and 470,000 won (US$423.88) target price.

Its revenue in the period will rise 5.7 percent on-year to 6.74 trillion won while operating profit will decline 3.5 percent to 701.2 billion won, in line with market consensus. Its earnings will improve now having bottomed out in the first quarter, and stock price has been declining since the beginning of the year adding valuation appeal, said analyst Baek Yeong-chan.

China’s car battery specialist CATL went public earlier this month and has been hitting the stock price cap ever since. The value of battery business is drawing attention again. LG Chemical’s car battery manufacturing capacity will top the global industry, reaching 26 Gwh by the end of this year, and its corporate value will be further highlighted, forecast the analyst. 

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