Samsung Securities analyzed on the 10th that the difficult market conditions will continue in the first quarter of this year regarding LG Energy Solution. The target share price was lowered from the previous 430,000 won to 410,000 won, and the investment opinion was maintained as "neutral."
Jo Hyun-ryeol, a Research Institute at Samsung Securities, noted, "It is expected that the difficult market conditions will persist due to changes in U.S. policy and the delay in the recovery of global demand," and "operating profit is also expected to be 2.24 trillion won, which will fall short of the average forecast of securities companies."
LG Energy Solution announced its tentative results on the 9th. The sales revenue recorded 6.45 trillion won, a 6% decline compared to the previous quarter. Operating profits turned to a loss, posting an operating deficit of 225.5 billion won. Jo noted, "The growth rate of sales of secondary batteries has slowed, and sales of energy storage systems (ESS) have also been sluggish."
He added, "During GM's inventory adjustment process, sales volume has slowed compared to the previous quarter, but it is estimated that the scale of inventory adjustment by client companies has decreased compared to previous expectations."