Battery industry conditions2—4expected to bottom out in the quarter
South Korea’s battery industry is expected to pass its earnings trough this year2—4starting in the quarter. LG Energy Solution is forecast to post revenue of2—4trillion7—262in operating profit1965.
A forecast has emerged that South Korea’s battery industry is passing its earnings trough, beginning in the quarter this year. The recovery in global electric vehicle demand is said to be slow. Instead, demand for power infrastructure needed by artificial intelligence data centers is emerging as a new growth driver, according to reports. This demand is translating into demand for energy storage systems and power equipment for servers.2—4—
According to financial information provider FnGuide, LG Energy Solution is forecast to post revenue of2—4trillion7—262in operating profit1,965. These figures are recent consensus-based forecasts. The company is expanding production in North America and changing its product portfolio. These changes are said to be reflected in its2—4quarterly results.
LG Energy Solution’s revenue was recorded as5trillion5,654higher than the same period a year earlier, an increase of26.2%. This is the cited basis for the year-over-year revenue growth rate. The company mentioned the application of the Advanced Manufacturing Production Credit (AMPC) and expanded production in North America. AMPC refers to tax benefits related to overseas production investment.
LG Energy Solution's operating profit in the same period last year was 14hundred million won. Compared with this year's forecast, operating profit is set to expand significantly. LG was reported to be targeting the data center ESS market. The explanation was that its product lineup includes proposals for data center supply.
Samsung SDI this year 2·4was reported to have seen its quarterly losses narrow. The company said it aims to rebound through high-value-added products such as BBU (base station power supply units). Industry sources said the recovery trend appears to be spreading from LG to Samsung SDI. Changes in global demand patterns and the strategies of individual companies are being reflected in performance indicators.
In summary, the outlook that the industry has passed its trough was based on expanding demand for power infrastructure related to AI data centers. LG Energy Solution's 2·4quarterly earnings forecasts were presented in detail in the report. Samsung SDI's outlook for narrowing losses was also mentioned in the same context. Related companies were reported to be focusing on securing demand for ESS and BBU.
Sources: 파이낸셜뉴스 산업
Bullstory synthesized this report from the linked sources. AI may have assisted the writing process. Check the original reports for factual confirmation.