[Special Stock] LG Energy Solution Drops Below 100 Trillion Market Cap... Intraday Plunge Over 4%

[Asia Economy Reporter Minji Lee] LG Energy Solution's market capitalization has fallen below 100 trillion won for the first time since its listing.

At 10:58 a.m. on the 24th, LG Energy Solution was trading at 422,500 won, down 4.41% from the previous trading day. The company's market capitalization stood at 98.865 trillion won, falling below 100 trillion won for the first time since its listing on the 27th of last month. On the day of listing, the company's market capitalization based on the closing price was 118.17 trillion won.

Externally, the stock market has continued to show sluggish trends amid the combined effects of interest rate hikes and concerns over armed conflict between Russia and Ukraine, leading to increased discounts on the secondary battery sector and reduced investor interest. On the previous day in the U.S. stock market, Tesla, an electric vehicle manufacturer and seller, fell more than 7% due to growth slowdown concerns, which further widened the decline in secondary battery cell manufacturers on this day. At the same time, Samsung SDI fell 4.01%, and SK Innovation dropped 2.48%.

Recently, concerns over profitability deterioration have also increased due to rising material prices. This is because the prices of secondary battery materials such as lithium, cobalt, nickel, and electrolytes are rising as electric vehicle sales increase in China. Yoon Hyuk-jin, a researcher at SK Securities, said, “Reflecting concerns over LG Energy Solution's profitability deterioration, this year's operating profit margin is estimated at 4%, lower than last year's 4.3%,” adding, “In this year of rising interest rates, profitability and high valuation will be challenges for the company.”