[Click eStock] What If LG Energy Solution Is Allocated '0 Shares'...

[Asia Economy Reporter Junho Hwang] Analysts suggest that investors who did not receive any allocation in the LG Energy Solution IPO, which recently acted as a 'black hole' for stock market funds, should pay close attention to Samsung SDI.

According to Kiwoom Securities Research Center on the 20th, the market capitalization of LG Energy Solution after listing is highly likely to exceed 100 trillion won. Assuming 100 trillion won, Samsung SDI's market capitalization is only about half that of LG Energy Solution and one-fifth that of CATL. Specifically, Samsung SDI's market capitalization is 48% of LG Energy Solution's, and its PER is about 21%. In contrast, based on next year's figures, Samsung SDI's total sales are at 75%, while operating profit and EBITDA are 141% and 105%, respectively, surpassing Samsung SDI. When comparing battery business alone, Samsung SDI's sales are 62% and operating profit is 90% of LG Energy Solution's.

However, Kiwoom Securities views this gap as excessive. Samsung SDI's battery technology and competitiveness are evaluated as industry-leading. While CATL and LG Energy Solution are known to have significant advantages in production capacity and order backlog, Samsung SDI is considered to be among the top in battery technologies such as energy density, long lifespan, and fast charging. Additionally, its material and process technologies are regarded as even more advanced. In terms of cylindrical cells and ESS competitiveness, Samsung SDI ranks first globally.

The Gen 5 battery, which began production at the end of Q3 last year, is also receiving market attention. This battery can increase energy density by 20% and reduce costs by 20%. With an increase in Gen 5 customers and models this year, its sales proportion is expected to expand to 15%, accompanied by profitability improvements.

Kiwoom Securities analyst Jisan Kim stated, "We plan to increase production capacity for medium and large batteries by 30-40% annually until 2024, and sales will grow at the same rate," adding, "From 2025, with the addition of results from Stellantis and the U.S. joint venture, we expect even faster growth."