[KR-2차전지] 08/26 Korea Market Insights

As a senior equity analyst, my evaluation of LG Energy Solution focuses on its strategic pivot and operational resilience amidst the electric vehicle (EV) (chasm).

While the broader EV market is experiencing a temporary demand slowdown, LG Energy Solution successfully defended its profitability in Q2 by leveraging the high-growth Energy Storage System ((ESS)) sector. Notably, global (ESS shipments) surged dramatically, offsetting softness in automotive batteries and demonstrating strong revenue diversification. Furthermore, management’s pragmatic approach to next-generation technologies—focusing on early commercialization of (all-solid-state batteries) in smaller devices like smartphones before tackling large-scale automotive production—highlights a disciplined capital allocation strategy. Although short-term margin uncertainties in the (ESS) segment warrant close monitoring, the structural growth and successful mitigation of EV headwinds validate a positive outlook.

As a senior equity analyst, the recent news flow surrounding (EcoProBM) presents a clear dichotomy between long-term technological potential and severe near-term (earnings and stock price sluggishness). While the Ministry of Trade, Industry and Energy’s selection of the company as a (Super Eul) for its all-solid-state battery (solid electrolyte) technology underscores its solid fundamental competitiveness and technological moat, market sentiment remains heavily weighed down. Following a massive (1.2 trillion won capital increase), ongoing financial burdens and weakening demand have prompted major brokerages like Eugene Investment & Securities to aggressively (lower target prices). In the short term, the absence of a clear bottom and the burden of equity dilution outweigh technological accolades, warranting a cautious investment stance.

As a senior equity analyst, I evaluate POSCO Future M’s recent announcements regarding the entry into the Lithium Iron Phosphate ((LFP) cathode) market as a pivotal turning point for the company. Securing a massive (2.7 trillion KRW) long-term supply agreement for 190,000 tons with a major domestic battery maker validates its technological competitiveness and product diversification strategy. This breakthrough mitigates over-reliance on high-nickel NCM chemistries, aligns with the rising global demand for affordable EV batteries, and signals that the cyclical (bottoming out) of the secondary battery sector may be near. Consequently, this positions the company for renewed top-line growth and multiple expansion.

As a senior equity analyst, I note that while L&F reported a positive operational turnaround with (operating profit of 20.8 billion KRW) in Q2, the simultaneous raid by the (Financial Supervisory Service’s Judicial Police) regarding suspicious (amended disclosures) introduces severe regulatory and compliance risks. Legal and investigative uncertainties heavily outweigh short-term earnings improvements, creating significant downward pressure on investor sentiment.

As a senior equity analyst, I evaluate Samsung SDI’s recent strategic moves as a highly favorable catalyst for the company’s mid-to-long-term valuation. The decision to secure approximately (4.4 trillion KRW) in investment capital through the disposal of Samsung Display shares provides robust financial ammunition. Furthermore, the official declaration of entering high-growth (new businesses)—ranging from robotics and space applications to next-generation (sodium batteries)—signals a proactive pivot toward diversifying its revenue streams beyond traditional EV batteries. This aggressive capital reallocation and strategic expansion significantly enhance the company’s future growth optionality and market sentiment.