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LG Energy Solution (Photo=Yonhap News) |
[Alpha Biz= Reporter Paul Lee] IBK Investment & Securities predicted on the 17th that LG Energy Solutions' poor performance in the first quarter will continue until the second quarter.
Regarding LG Energy Solution's sluggish first-quarter performance in the report, IBK Investment & Securities analyzed, "The shipments of mid- to large-sized electric vehicles (EVs) are estimated to have decreased significantly due to the sluggish demand for electric vehicles in Europe and the reduced operation rate of the Polish plant due to the increase in the share of Chinese battery companies." LG Energy Solutions announced on the 5th that its provisional sales in the first quarter fell 29.9% year-on-year to 6.1287 trillion won, and operating profit fell 75.2% to 157.3 billion won during the same period.
IBK Investment & Securities said, "The small batteries appear to have been robust, but the energy storage system (ESS) is estimated to have reduced both shipments and profitability due to the seasonal off-season."
IBK Investment & Securities predicts that second-quarter earnings will increase 20.8% from the previous quarter to 7.4 trillion won and operating profit will grow 183.1% from the previous quarter to 445 billion won.
He pointed out that although demand for EVs in North America will be strong, recovery of EV shipments in Europe will be an important factor in recovering performance.
The investment opinion of LG Energy Solution was 'buy' and the target price remained side by side at 500,000 won.
AlphaBIZ Paul Lee(hoondork1977@alphabiz.co.kr)
