Corporate Logo(source: lgensol.com)
Mirae Asset Securities has revised upward its earnings forecast for LG Energy Solution(373220) for the first quarter.
In a report released on March 13, Mirae Asset Securities analyst Kim Cheol-jung stated, "First-quarter revenue is expected to be 6.2 trillion won(down 4% from the previous quarter), with operating profit forecasted to turn positive at 127 billion won." This is a 6% increase in revenue and a 233 billion won upward revision in operating profit compared to previous estimates.
Kim explained, "The launch of Tesla’s new Model Y at the Nanjing plant in China and stronger-than-expected electric vehicle demand in Europe, especially from Volkswagen, have contributed positively." Additionally, the stabilization of key metal prices has helped improve costs, which is also viewed positively.
The stabilization of key metal prices, including lithium, nickel, and cobalt, reduces the likelihood of further declines in battery cell prices and raises expectations for differentiated inventory buildup based on demand and production targets for the second half of the year. Kim noted, "Considering the lead time between metal prices and battery cell prices, the potential for further price declines is limited."
Changes in U.S. and EU policies are also expected to support long-term demand growth. The EU’s electric vehicle-related policies, set to take effect in 2026, are expected to improve demand expectations for the European market. Similarly, the U.S. is expected to resolve policy uncertainties through budget adjustments in April or May. As a result, price stabilization and improved shipment volumes are expected to take hold in the second half of the year.
*[KOSPI]LG Energy Solution(373220) was established through a spin-off from LG Chem, and it develops, manufactures, and sells battery products used in electric vehicles(EVs), energy storage systems(ESS), and more. Market capitalization is 81 trillion 549 billion won(as of March 12, 2025, closing price).
Corporate Logo(source: lgensol.com)
Mirae Asset Securities has revised upward its earnings forecast for LG Energy Solution(373220) for the first quarter.
In a report released on March 13, Mirae Asset Securities analyst Kim Cheol-jung stated, "First-quarter revenue is expected to be 6.2 trillion won(down 4% from the previous quarter), with operating profit forecasted to turn positive at 127 billion won." This is a 6% increase in revenue and a 233 billion won upward revision in operating profit compared to previous estimates.
Kim explained, "The launch of Tesla’s new Model Y at the Nanjing plant in China and stronger-than-expected electric vehicle demand in Europe, especially from Volkswagen, have contributed positively." Additionally, the stabilization of key metal prices has helped improve costs, which is also viewed positively.
The stabilization of key metal prices, including lithium, nickel, and cobalt, reduces the likelihood of further declines in battery cell prices and raises expectations for differentiated inventory buildup based on demand and production targets for the second half of the year. Kim noted, "Considering the lead time between metal prices and battery cell prices, the potential for further price declines is limited."
Changes in U.S. and EU policies are also expected to support long-term demand growth. The EU’s electric vehicle-related policies, set to take effect in 2026, are expected to improve demand expectations for the European market. Similarly, the U.S. is expected to resolve policy uncertainties through budget adjustments in April or May. As a result, price stabilization and improved shipment volumes are expected to take hold in the second half of the year.
*[KOSPI]LG Energy Solution(373220) was established through a spin-off from LG Chem, and it develops, manufactures, and sells battery products used in electric vehicles(EVs), energy storage systems(ESS), and more. Market capitalization is 81 trillion 549 billion won(as of March 12, 2025, closing price).