[Click eStock] 'KOSPI First Trade' L&F, Index Inclusion Effect 'Not Sure'

Even if L&F is included in the KOSPI index, it is expected to be difficult to anticipate a stock price increase due to the index inclusion.

On the 29th, Noh Woo-ho, an analyst at Meritz Securities, stated, "L&F's 36,247,000 shares will be traded for the first time today after being transferred to KOSPI," but added, "However, it is difficult to expect the past formula where transfer to KOSPI led to stock price increases to hold true." This is because the secondary battery industry conditions have not improved, and it is also difficult to expect improvements in L&F's fundamentals such as earnings.

Analyst Noh said, "L&F must execute mid- to long-term tasks such as strengthening secondary battery material (upstream) capabilities, investing in precursor joint ventures, diversifying cathode materials, and promoting a graphite anode joint venture (JV) with Mitsubishi Chemical," adding, "In particular, in line with LG Energy Solution's cylindrical battery expansion strategy, facility expansion is necessary, which will be followed by large-scale external financing such as borrowings or rights offerings."

He predicted, "If large-scale investments through financing do not lead to business results such as mid- to long-term order contracts, it will be difficult to resolve the undervaluation of the stock price." He also added, "Since the second half of last year, there have been attempts at shareholder activism centered on small shareholders, and appropriate responses to this will be necessary in line with the transfer to KOSPI."