[Featured Stock] LG Chem Falls Below 800,000 Won Intraday Amid Foreign Securities Firms' 'Sell Reports'

[Asia Economy Reporter Ji Yeon-jin] On the 28th, LG Chem's stock price fell below 800,000 won during trading on the Korea Exchange. Following the recall news of energy storage batteries from its subsidiary LG Energy Solution, and a sell report from a foreign securities firm the previous day, the stock plunged more than 6% and continued to decline sharply from the early trading hours.

As of 9:15 AM on the day, LG Chem was trading at 805,000 won, down 27,000 won (3.25%) from the previous day. In the early trading session, it dropped to 799,000 won, 3.97% lower than the previous day.

Earlier, LG Chem's wholly owned subsidiary LG Energy Solution announced it would voluntarily replace some ESS batteries produced in the initial phase in China.

Additionally, Credit Suisse (CS) downgraded LG Chem's investment rating from Outperform to Underperform and lowered the target price from 1,300,000 won to 680,000 won. The report stated that since LG Energy Solution will become a holding company due to its listing, a high discount rate and dilution of equity value, similar to other domestic holding companies, must be applied. LG Energy Solution, which was spun off from LG Chem last year, is planning to go public in the second half of this year.

The company joined the ranks of premium stocks by trading up to 1,050,000 won in January this year but fell to 770,000 won in March due to the impact of the electric vehicle battery lawsuit with SK Innovation.

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