KB Securities raised its target price for L&F to 190,000 won. The importance of energy storage systems (ESS) as AI infrastructure is surging, improving earnings.
According to KB Securities on the 30th, L&F's third-quarter revenue was 652.3 billion won, up 86% from a year earlier. Operating profit came to 22.1 billion won, turning to the black for the first time in two years.
Lee Chang-min, an analyst at KB Securities, said, "Cathode sales volume increased 39% from the previous quarter," and noted, "Profitability was also solid on higher utilization and the reversal of inventory valuation losses."
KB Securities also projected that L&F's fourth-quarter results this year will be solid. It forecast revenue of 658 billion won, up 80% from a year earlier, and an operating profit of 7.9 billion won.
In particular, as ESS is rapidly rising in importance as AI infrastructure, KB Securities raised the compound annual growth rate (CAGR) of operating profit from the previous 29% to 38% for the period from next year through 2030.
The analyst said, "As the Chinese government has signaled the introduction of an export license system for batteries, exclusive benefits for L&F are expected," adding, "We maintain our top-pick view on L&F within the secondary battery sector."