[Click eStock] "L&F to Supply Battery Key Materials to Tesla"... Target Price Up 19%

[Asia Economy Reporter Ji Yeon-jin] Mirae Asset Securities announced on the 31st that it expects significant earnings growth for secondary battery component company L&F due to improved production line productivity of new facilities, raising the target stock price by 19% to 125,000 KRW.

Kim Cheol-jung, a researcher at Mirae Asset Securities, said, "We have upwardly revised the production capacity to 42,000 tons and 84,000 tons by the end of this year and next year, respectively, by 10% and 20%. We believe that in the second quarter, NCMA supply to LG Chem and Tesla will be in full swing, leading to simultaneous increases in volume and blended average selling price."

The company is expected to begin full-scale supply of NCMA (Nickel, Cobalt, Manganese with a small amount of Aluminum added cathode material), a core material for electric vehicle batteries, to the US electric vehicle manufacturer Tesla from the second half of this year. Tesla's sales proportion is expected to increase from 50% this year to 77% next year.

Operating profit is forecasted to grow more than fourfold, reaching 25 billion KRW this year and 110 billion KRW next year.

Researcher Kim said, "Although Tesla's own battery cell production start and mass production capability of its own battery production need to be confirmed later, it is highly likely that Tesla will be the first to adopt the company's NCMA, which has just begun supply at the initial stage."

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