[KR-2차전지] 10/21 Korea Market Insights

As a senior equity analyst, I evaluate the recent news flow for **LG Energy Solution (LG엔솔)** as carrying a net positive investment implication.

While the police investigation into a former executive regarding suspicious consulting fees (embezzlement allegations) introduces temporary noise and governance concerns (News [1], [4]), the fundamental business catalysts heavily outweigh these risks. Most notably, LG Energy Solution has secured its first multi-trillion-won LFP cathode supply contract with LEnF (LFP 양극재 계약), significantly strengthening its domestic supply chain and cost competitiveness (News [3]). Furthermore, robust demand in the Energy Storage System (ESS) sector has prompted analysts to revise next year’s operating profit forecasts upward by over 50% (News [2]). These developments underscore strong underlying operational momentum and strategic positioning in high-growth segments.

As a senior equity analyst, I evaluate the recent developments surrounding (EcoPRONBM) positively. The company successfully closed its massive (rights offering) of approximately 886.1 billion KRW with a subscription rate of (103.25%), proving market confidence despite mixed regional EV sentiments—specifically, sluggish North American demand balanced by European expectations. Furthermore, the upcoming listing of new shares scheduled for next month will alleviate liquidity concerns and support stable capital allocation for capacity expansion, reinforced by steady supply chains to major European OEMs like (BMW and Mercedes-Benz).

As a senior equity analyst, my assessment of POSCO Future M reveals a complex interplay of near-term earnings headwinds and long-term strategic catalysts.

On one hand, the company faces persistent (earnings slowdown), with third-quarter operating profit projected to plummet significantly due to the broader electric vehicle (EV) chasm and lagging demand recovery.

On the other hand, POSCO Future M is actively strengthening its fundamental growth drivers through portfolio diversification. Notably, securing a massive (LFP cathode contract) worth 1.1 trillion KRW from SK On reduces its heavy reliance on ternary batteries and positions the company favorably amid shifting supply chain dynamics. Furthermore, the growing prominence of its (anode material business) highlights its strategic value under stricter geopolitical sourcing rules.

While cyclical bottoming processes will likely cap near-term share price momentum, these structural wins warrant a neutral-to-constructive outlook for patient investors.

As a senior equity analyst, I evaluate L&F’s recent developments as having mixed implications for the company’s near-term outlook. On the negative side, the impending maturity of (1 trillion won in borrowings) raises significant liquidity concerns and pressures management to secure alternative funding sources promptly. Conversely, this is strategically counterbalanced by the landmark (multi-trillion won LFP cathode supply contract) with LG Energy Solution, which validates L&F’s product competitiveness, diversifies its portfolio toward affordable EV segments, and secures long-term revenue streams. While financial risk remains a critical near-term overhang, the operational milestone significantly strengthens its medium-term fundamentals.

As a senior equity analyst, my evaluation of Samsung SDI is underpinned by near-term earnings resilience and strong strategic positioning in advanced technologies.

Firstly, market consensus points to a favorable (3Q Earnings Recovery) despite temporary cost reflections, setting the company apart from domestic peers experiencing sluggish momentum. Secondly, Samsung SDI is accelerating its technological leadership by targeting the commercialization of (All-Solid-State Batteries by 2027) through joint development with EcoPro BM, with potential early adoption in the high-growth (Humanoid Robot) sector. Finally, regulatory tailwinds in the (US ESS Market)—specifically the exclusion of Chinese competitors—provide a robust structural growth driver for its stationary energy storage business.