[Click eStock] "LG EnSol, Lower Earnings Expected in Second Half"

On the 9th, Kiwoom Securities analyzed that LG Energy Solution needs to lower its performance expectations for the second half of the year considering the decrease in electric vehicle demand. They did not disclose an investment opinion or target price.

Junsoo Kwon, a researcher at Kiwoom Securities, stated, "The biggest variable is whether GM will further downgrade its North American production guidance (200,000 to 250,000 units) in its earnings announcement on the 23rd."

Researcher Kwon assessed, "GM's cumulative sales this year are 38,355 units, so to reach 200,000 units, it needs to sell an average of 27,000 units per month for the remaining period. Considering that only about 7,500 units were sold in June, achieving this seems difficult."

He added, "Ultimately, adjustments in guidance by automakers upstream will trigger a chain reaction of downward guidance adjustments from battery cell manufacturers to material suppliers. In fact, many companies are expected to revise their initial guidance during the Q2 earnings announcements."

Researcher Kwon concluded, "While LG Energy Solution is expected to show gradual performance improvement in the second half compared to the first half, it is necessary to lower expectations. In the short term, trading individual stocks rather than investing in the sector is a more effective approach."