"1 Million Won at Stake"... LG Chem's Value Soars

[Asia Economy Reporter Koh Hyung-kwang] A target price of 1,000,000 KRW has been set for LG Chem, considered the leader in secondary batteries. This is the first report to set LG Chem's target price at 1,000,000 KRW. The previous highest target price was 930,000 KRW, set by Samsung Securities on the 12th.

According to the industry on the 29th, Hana Financial Investment recently raised LG Chem's target price by 25% from 800,000 KRW to 1,000,000 KRW, stating that the strong performance in the petrochemical sector will alleviate the overvaluation burden caused by the rising stock price driven by expectations in the secondary battery sector. The investment opinion was maintained as 'Buy.'

Researcher Yoon Jae-sung said, "All divisions of petrochemicals are showing strong performance. On the other hand, as seen in the cancellation of Saudi Aramco's refinery and petrochemical facility investments in China, global expansions are being canceled or postponed one after another," adding, "From a big-picture perspective, petrochemicals have entered a recovery phase from the bottom, which will act as a factor for future performance improvement and premium valuation."

Accordingly, Hana Financial Investment forecasted that LG Chem will record an operating profit of 722.7 billion KRW in the third quarter. This represents an increase of 90% compared to a year ago and 26% compared to the previous quarter, with the petrochemical division's operating profit approaching 600 billion KRW, driving the performance, according to Hana Financial Investment's analysis.

Researcher Yoon said, "The clear turnaround in petrochemicals is expected to raise the floor of the company's overall profits, which will offset the increased valuation burden," and added, "Now, petrochemicals will be a premium factor compared to other battery companies." LG Chem closed at 759,000 KRW in the KOSPI market the previous day.

This content was produced with the assistance of AI translation services.