LG Chem 2Quarterly earnings surprise expected, expanded K-battery volumes
Brokerages expect LG Chem to post a surprise performance in the 2quarter on a recovery in its battery and chemical divisions, and have raised their target prices. As the EU Industrial Acceleration Act could result in approximately 45% of European automakers’ volumes being directed to Korean batteries, expectations have emerged for LG Energy Solution to return to profitability in the 2quarter and see increased ESS orders.
Get free LG화학 email updates.
Bullstory sends one daily email when new analysis or important company news is available.
Brokerage analyses forecast that LG Chem will post a surprise performance in the 2quarter on a recovery in its battery and chemical divisions. Based on this outlook, some brokerages were reported to have raised LG Chem’s target stock price. The company’s individual disclosures were not included in the main article.
Expectations have emerged that LG Energy Solution will return to profitability in the 2quarter. Some analyses raised the target price and identified the 2quarter as the point at which the company would return to profitability. The article mentioned increased ESS orders as a factor behind the improvement in performance.
With the full-scale implementation of the EU Industrial Acceleration Act, the possibility has emerged that European automakers’ dependence on China will decrease. The report introduced a forecast that approximately 45% of European automakers’ volumes would be directed to Korean batteries. It included the expectation that supply chains would change as the law’s detailed implementation proceeds.
The report suggested that Korean battery companies could benefit from increased ESS orders and expanded volumes in Europe. The article said that this order trend was linked to expectations of positive free cash flow next year. Specific contract sizes and company-by-company disclosures were not detailed in the article.
Both articles were structured as summaries of securities firms’ and industry opinions. Their content focused on forecasts and estimates. Actual results and contract disclosures should be checked in each company’s official filings.
This paragraph does not offer any additional interpretation or investment recommendation. It only summarizes the forecasts and figures reported in the articles. Investment decisions should be made after reviewing official earnings releases and filings.