[KR-2차전지] 11/11 Korea Market Insights

As a senior equity analyst, I evaluate the recent news regarding (LG Energy Solution). The police raid and investigation into a former president for alleged (breach of trust) involving over 10 billion KRW in advisory fees paid to a family-linked Chinese consulting firm present notable (governance risks). While this is an isolated incident concerning a former executive rather than current operational performance, such (internal control) failures can weigh on investor sentiment and corporate reputation in the near term.

As a senior equity analyst, I evaluate the recent developments surrounding (EcoPro BM) as a major milestone for the company’s financial stabilization and long-term growth strategy.

The successful completion of the (paid-in capital increase), which achieved an oversubscription rate of 103.3% with the final issue price set at 89,500 KRW, demonstrates strong market confidence and effectively alleviates near-term liquidity pressures. Having cleared this crucial hurdle, the company is now well-positioned to accelerate negotiations for a delayed (convertible bond (CB) issuance) worth 440,000 KRW, securing the capital needed for ongoing capacity expansion. Furthermore, strategic initiatives such as pursuing a (trillion-won battery materials deal) with a Chinese manufacturer in Europe highlight proactive efforts to diversify partnerships and strengthen its global supply chain positioning amidst shifting industry dynamics.

As a senior equity analyst, my evaluation of POSCO Future M balances forward-looking strategic expansions against an immediate, severe cyclical downturn.

While the company is actively securing future growth drivers—such as partnering with Palantir for (AX – AI Transformation) leadership, expanding its footprint into emerging markets like India, and diversifying its product mix with (LFP battery materials) and Vietnamese anode production—these long-term initiatives are overshadowed by near-term fundamental headwinds.

The most pressing concern is the prolonged contraction in earnings, with consensus pointing to a staggering (75% plunge in Q3 operating profit). This severe profit margin compression underscores the ongoing “chasm” in EV demand and falling average selling prices (ASPs), making near-term valuation unappealing despite the strategic luster.

As a senior equity analyst, I evaluate L&F’s recent strategic developments as a critical turning point for the company. The combination of its world-first (High-Nickel technology) leadership and aggressive portfolio diversification into (LFP cathode materials)—highlighted by the multi-trillion-won supply contract with LG Energy Solution and a new dedicated plant—demonstrates strong execution in securing future growth drivers. While the company has recently faced near-term profitability pressures due to (reverse-lags effects) and raw material cost burdens, these strategic moves, alongside planned structural improvements like (toll manufacturing of raw materials), pave the way for a solid operational turnaround and margin recovery.

As a senior equity analyst, Samsung SDI is currently navigating a pivotal transition phase characterized by a dichotomy between near-term headwinds and long-term growth catalysts.

On the negative front, the company is experiencing a (decline in non-China market share), reflecting intensifying global competition and sluggish near-term EV demand dynamics. However, this is being effectively counterbalanced by strong structural tailwinds. Samsung SDI is reinforcing its (earnings resilience through Energy Storage Systems, ESS), which are driving Q3 earnings expectations alongside profitability-focused strategies. Furthermore, the company is accelerating its strategic shift from (solid-state battery technology to mass production), targeting a commercialization window by the second half of 2027 to secure long-term premium market leadership.

While short-term top-line pressures persist, the robust expansion in the ESS segment and pioneering roadmap in next-generation solid-state batteries validate a constructive medium-to-long-term investment thesis.