LNDF is showing strong performance. Securities firms' analysis that the valuation attractiveness compared to its competitor EcoPro BM's corporate value is significant appears to be influencing the stock price.
As of 9:45 AM on the 10th, EcoPro BM is trading at 320,000 KRW, up 1.11% from the previous trading day.
Daishin Securities has raised LNDF's target stock price from 380,000 KRW to 430,000 KRW.
Jeon Chang-hyun, a researcher at Daishin Securities, stated, "Despite the recent rise in LNDF's stock price, the sharp increase in competitor EcoPro BM's stock price has expanded the market capitalization gap between the two companies from the usual 30% level to 55," adding, "Even considering LNDF's relative discount factors, the gap is excessive."
He emphasized, "Assuming a target market capitalization of 15.5 trillion KRW, the price burden is limited at about 61% compared to the competitor."
It is estimated that LNDF recorded sales of 1.2 trillion KRW and operating profit of 56.6 billion KRW in the first quarter of this year, representing increases of 118% and 7% respectively compared to the same period last year.
Researcher Jeon predicted, "The first-quarter operating profit is expected to fall 23% short of market expectations," and added, "The price (P) is estimated to have declined compared to the previous quarter due to the depreciation of the exchange rate."
He also noted, "Due to inventory adjustments by customers, shipments are expected to be similar to the previous quarter and below the existing guidance," adding, "In particular, it is judged that sales of Tesla electric vehicles (equipped with LG Energy Solution batteries) destined for Europe in the first quarter decreased by 16% compared to the previous quarter."
From the second quarter, as the impact of inventory adjustments subsides, sales for the quarter are estimated to reach 1.5 trillion KRW, with operating profit of 84.3 billion KRW.
Researcher Jeon explained, "With the full enforcement of the IRA, new orders centered in North America are expected to accelerate," and added, "In addition to Tesla, with which a direct supply contract was recently signed, it is expected that new OEM customers will be secured." He further stated, "The acquisition of next-generation technologies and diversified product portfolios such as high-nickel (N95), single crystal, and LFP will continue to create a favorable environment for new orders."
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