2023-10-12 19:45:16
LG Energy Solutions, a leading secondary battery company, achieved its highest performance in the third quarter of this year and its stock price is on the rise. On the other hand, securities companies lowered the target stock price for LG Energy Solution.
According to the Korea Exchange on the 13th, LG Energy Solution’s stock price closed at 493,500 won on the 12th, up 0.3% from the previous trading day. On this day, it rose by 1.82% and recorded 501,000 won.
On the 11th, when the performance was announced, it soared 7.31%. Before the earnings announcement, the stock price showed a downward trend for two consecutive trading days, falling 1.92%.
On the 11th, LG Energy Solution announced its provisional performance for the third quarter of this year. This performance achieved the highest quarterly performance ever.
In the third quarter of this year, it recorded sales of 8.2235 trillion won and operating profit of 731.2 billion won. This is an increase of 40.1% and 7.5%, respectively, compared to the same period last year.
It also greatly exceeded market expectations. Initially, the securities market predicted that LG Energy Solution’s performance in the third quarter of this year would be KRW 8.4 trillion in sales and KRW 690 billion in operating profit.
LG Energy Solution even predicted its highest annual performance. This is because it has already surpassed last year’s annual performance by achieving sales of 25.7441 trillion won and operating profit of 1.825 trillion won in just three quarters this year.
On the other hand, securities companies lowered the target stock price of LG Energy Solution. This is because the secondary battery market has recently slumped significantly and the stock prices of secondary battery stocks are falling overall.
Recently, the prices of batteries and cathode materials are falling due to the downward trend in the prices of lithium, nickel, and cobalt. As a result, the value of secondary batteries is decreasing and overall demand is slowing.
Hi Investment & Securities lowered the target stock price from 750,000 won to 650,000 won. Jeong Won-seok, a researcher at Hi Investment & Securities, said, “Due to changes in lithium prices, battery cell sales prices are expected to drop by 4-5% in the fourth quarter of this year. This reflects the recent decline in stock prices of stocks related to the global secondary battery value chain.”
DB Financial Investment lowered its target stock price from 750,000 won to 670,000 won. Han Seung-jae, a researcher at DB Financial Investment, said, “The price of cathode materials and batteries is weakening due to the sharp drop in metal prices,” and “Demand for electric vehicles in Europe and other regions is also slowing.” He then explained, “Battery inventory adjustments and shipment slowdown issues remain risk factors.”
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