[Weekly HOT Stocks] LG Chem Surges Over 30% in a Week... Jumps to 3rd in Market Cap

Foreign Investors' Top Net Purchase Stock Ranks 1st

[Asia Economy Reporter Geum Bo-ryeong] The stock price of LG Chem, the 'leader in secondary batteries,' rose more than 30% over the course of a week, propelling it to third place in market capitalization on the KOSPI market. This attracted significant attention from investors.

According to the Korea Exchange on the 8th, LG Chem closed the previous day at 746,000 KRW. During the trading session, it surged to 758,000 KRW, setting a new 52-week high.

LG Chem's stock price rose sharply within a week. The price, which was 568,000 KRW on the 31st of last month, reached 635,000 KRW on the 3rd, 642,000 KRW on the 4th, 670,000 KRW on the 5th, 680,000 KRW on the 6th, and 746,000 KRW on the 7th. This represents a 31.34% increase over five trading days. In terms of market capitalization ranking, it rose to third place following Samsung Electronics and SK Hynix.

Both individual and foreign investors showed strong interest. From the 3rd to the 7th, LG Chem ranked fourth among the top stocks by net purchases by individual investors, following Samsung Electronics, SK Hynix, and Kakao. It was the top stock by net purchases among foreign investors. During this period, individuals net purchased LG Chem shares worth 151.5 billion KRW, while foreigners net purchased shares worth 125.2 billion KRW.

LG Chem showed stable performance in the second quarter. On a consolidated basis, operating profit in Q2 increased by 131.5% year-on-year to 571.6 billion KRW. Sales during the same period also rose by 2.3% to 6.9352 trillion KRW.

The operating profit from the battery division exceeded expectations. For secondary batteries used in electric vehicles (EVs), it is estimated that the break-even point (BEP) was surpassed due to the normalization of yield at the Polish production plant. Increased shipments of secondary batteries for energy storage systems (ESS) driven by the expansion of the North American power grid and increased shipments of cylindrical batteries for Tesla also contributed to the expansion of operating profit in the battery division.

Hwang Yoo-sik, a researcher at NH Investment & Securities, explained, "Although shipments of secondary batteries for ESS are expected to decrease in the second half of the year, shipments of secondary batteries related to EVs are expected to continue increasing. The production capacity for EV secondary batteries is planned to reach 100 GWh by the end of this year and 120 GWh by the end of next year."

The growth outlook is bright. Won Min-seok, a researcher at Hi Investment & Securities, said, "Concerns about the speed of yield stabilization at the Polish production plant have been eliminated by this performance, and based on the accumulated order backlog, continuous external growth and profitability improvement in medium-to-large batteries are expected. In small and cylindrical batteries, the sales proportion for EVs was 50% in the past but is expected to expand to 80%, leading to continuous profitability improvement. In the mid-to-long term, LG Chem is expected to achieve the most stable performance growth within the chemical industry."