Korea Investment & Securities noted on the 23rd that L&F is expected to see a significant increase in cathode material shipments this year compared to the same period last year due to the new car effect of North American original equipment manufacturer (OEM) models. Additional order momentum is also anticipated. It presented a target stock price of 95,000 won and an investment opinion of 'buy'. The closing price of L&F on the previous trading day was 59,800 won.
Korea Investment & Securities analyzed that L&F is expected to expand shipments from this year as it exclusively supplies the Juniper-flavored NCMA95 product for the North American OEM model Y. As shipments of the higher-priced NCMA95 compared to the existing NCMA90 product begin in earnest, it is also positive for margin improvement.
However, due to a decrease in average selling price (ASP) from falling metal prices, revenue is projected to rise only 25% compared to the same period last year.
Researcher Kim Ye-rim from Korea Investment & Securities explained, "There is a risk due to the high proportion of single customers, but a supply contract worth 3.5 trillion won expected with a North American OEM and plans for supply to Hyundai Motor through SK On next year are expected to alleviate related risks to some extent."
Hyundai Motor's new electric vehicle dedicated plant in the United States, "Hyundai Motor Group Meta Plant America (HMGMA)," is expanding production of the Ioniq 5 and is set to launch the Ioniq 9 in the first half of this year. Given that this is a factory on a Hyundai Motor Group level, there is also a possibility of producing Kia's electric vehicle (EV) series in the future.
Currently, all three domestic battery cell companies are starting construction on production facilities to secure orders for the 4680 cylindrical battery. L&F has already secured references for cylindrical high-nickel cathodes, making it highly likely to win orders for cylindrical cathodes from LG Energy Solution and Japan's Celgard.
Researcher Kim said, "Considering that the sales volume of Celgard's customers is large, additional performance improvements are expected," and added, "Based on performance estimates, L&F has the most attractive valuation among the three cathode companies, making it the top pick within the secondary battery material sector."