[Featured Stock] LG Chem's Stock Surges on Expectations of Q1 Return to Profitability

LG Chem is showing strong performance on the 19th, fueled by expectations that its first-quarter results will significantly exceed market forecasts.

As of 1:40 PM on the same day, LG Chem's stock price is trading at 244,500 KRW per share, up 5.62% compared to the previous day. In the early morning session, the stock price even surpassed the 250,000 KRW mark per share.

This surge is a result of improved investor sentiment and buying momentum driven by expectations of a turnaround to operating profit in the first quarter. Dongwook Lee, a researcher at IBK Investment & Securities, stated in a report released that day, "LG Chem's operating profit for the first quarter is expected to turn positive to 191 billion KRW, significantly exceeding the market expectation of 61.5 billion KRW," adding, "This is attributed to improved performance in the core business sectors."

Specifically, in the petrochemical sector, it is anticipated that losses will decrease compared to the previous quarter due to the sustained profitability of high-value-added products and the effects of restructuring in commodity products. Additionally, operating profit in the advanced materials sector is estimated to increase by 161.4% compared to the previous quarter. The energy solutions operating profit is also expected to turn positive compared to the previous quarter, driven by spread improvement due to the stabilization of metal prices and shipments of the new 2170 cylindrical batteries.

Accordingly, the researcher projected LG Chem's net profit for this year to increase by 114.7% year-on-year to 1.1055 trillion KRW. He maintained a buy investment rating and a target stock price of 320,000 KRW.