On the 28th, the stock price of LG Energy Solution, the third largest by market capitalization, is rising by more than 4%. This follows securities firms' analyses predicting a short-term rebound in stock price after a return to profit in the second quarter.
As of 9:17 a.m. on that day, LG Energy Solution is trading at 378,750 won, up 15,250 won (4.2%) compared to the previous trading day. This marks the first time the stock price has crossed the 370,000 won mark since February of this year.
LG Energy Solution recorded an operating profit of 492.2 billion won in the second quarter (April to June) of this year, a 152% increase compared to the same period last year. The operating profit margin, excluding the effects of the American Manufacturing Production Credit (AMPC), has returned to profit for the first time in six quarters.
Jumin Woo, a researcher at NH Investment & Securities, noted on that day, "A short-term rebound in stock price is expected due to the high growth rate of energy storage systems (ESS)," raising the target price by 12% to 450,000 won.
The researcher stated, "ESS production capacity is expected to expand from 27 GWh this year (17 GWh in North America, 7 GWh in China, and 3 GWh in Poland) to over 40 GWh next year (over 30 GWh in North America, 7 GWh in China, and 3 GWh in Poland)," adding, "With a backlog of orders of 50 GWh as of the second quarter, production capacity will be the variable affecting ESS performance rather than demand."
Kim Hyun-soo, a researcher at Hana Securities, has also upgraded the investment opinion on LG Energy Solution from 'neutral' to 'buy' and raised the target price to 450,000 won.
Researcher Kim stated, "With the start of ESS production in the United States, we have entered a crucial turning point in performance flow," and added, "Starting next year, tariffs on Chinese-made ESS batteries will be imposed, and a local ESS factory with a scale of 17 GWh will begin operation in 2024, with 30 GWh expected to be operational by 2027."