[Click eStock] "L&F Expected to Return to Profit in Q3"

On September 16, KB Securities predicted that L&F would return to profitability in the third quarter of this year.

KB Securities estimated that in the third quarter, L&F would achieve sales of 670.9 billion won and operating profit of 18.8 billion won. Compared to the same period last year, sales are expected to increase by 91% and operating profit would turn positive.

KB Securities researcher Lee Changmin stated, "We expect a quarterly profit turnaround for the first time in two years," and explained, "The selling price of cathode materials is expected to decline by 5% quarter-on-quarter, reflecting the impact of falling lithium prices in the first half of the year."

He continued, "Due to the full-scale delivery of the Tesla Model Y Juniper, shipments of NCMA95 are projected to increase, with sales volume expected to rise by 38% compared to the previous quarter," adding, "We anticipate that this will mark the largest quarterly shipment volume since the first quarter of 2023."

He also said, "We expect profitability to improve as fixed costs are covered," and predicted, "With NCMA95 confirmed for use in Tesla's new models, including the Model Y Long Body and Model 3 Plus, which are scheduled for delivery within the year, this differentiated shipment trend from competitors is expected to continue through the end of the year."

Researcher Lee analyzed, "The strong partnership with Tesla will also shine as Tesla expands its new businesses," and added, "Tesla is pursuing new ventures, including the unveiling of next-generation energy storage systems (ESS), expansion of its robotaxi service, and the imminent launch of humanoid robots."