[Featured Stocks] Saeronics and L&F Annual Profit Growth of 170%↑... Equity Value Three Times Market Capitalization

[Asia Economy Reporter Hyungsoo Park] Saeronix is showing strong performance. The value of its subsidiary L&F's shares has exceeded 650 billion KRW, reaching three times its market capitalization, which appears to be influencing the stock price. Saeronix is the largest shareholder of L&F, holding 4,603,089 shares (16.39%) as of the end of the half-year.

As of 9:58 AM on the 13th, Saeronix is trading at 18,800 KRW, up 18.99% from the previous trading day. Saeronix's market capitalization is 230 billion KRW.

On the same day, if L&F rises more than 9%, its market capitalization approaches 4.9 trillion KRW. Changmin Lee, a researcher at KB Securities, stated, "L&F's operating profit growth rate is expected to reach 388% by 2023," adding, "The expansion of EV cathode material sales driven by increased demand from major customers will lead to improved performance."

He continued, "L&F's operating profit is expected to grow at an average annual rate of 170%, from 1.5 billion KRW in 2020 to 212.3 billion KRW in 2025," analyzing, "Sales of EV cathode materials centered on major customers and SK Innovation are rapidly increasing."

Furthermore, he introduced, "With the operating rate of the new plant equipped with high-nickel cathode material production capacity rising this year, both scale expansion and profitability improvement are occurring simultaneously," and added, "The main products, Tesla's NCMA and SK Innovation's NCM, are premium products with nickel content increased up to 90%."

He emphasized, "As demand rapidly increases in the future, performance improvement driven by product mix enhancement will lead the way," and highlighted, "L&F's cathode material production capacity is expected to expand from 20,000 tons in 2020 to 140,000 tons in 2023."