"LNDF, Target Price 360,000 Won... Tesla Surprise Has Begun"

[Asia Economy Reporter Park So-yeon] Mirae Asset Securities has raised the target price of L&F to 360,000 KRW while maintaining a buy rating.

According to the financial investment industry on the 14th, Mirae Asset Securities recently revised upward its medium- to long-term production capacity and profitability estimates for L&F in a report.

Mirae Asset Securities cited the reduction in manufacturing costs due to an increased proportion of single-product (NCMA, Tesla) production, the cost reduction effect from signing an MOU with US battery recycling company Redwood, and the spread expansion from passing on raw material price increases to product prices as the basis for the upward revision of profitability.

In the third quarter of this year, L&F recorded sales of 240.7 billion KRW and operating profit of 13.5 billion KRW. This is a strong performance that significantly exceeded Mirae Asset Securities' estimates.

Excluding a one-time cost of about 1.5 billion KRW due to bonus payments, the operating profit margin exceeds 6%. In particular, the profitability greatly exceeded expectations, which was analyzed to be due to the increased proportion of NCMA for LG Energy Solution-Tesla.

Mirae Asset Securities expects L&F's production capacity to be significantly revised upward from 2025 following the signing of the MOU with Redwood Materials. Production capacity is projected to increase to over 400,000 tons in 2025-2026.

Mirae Asset forecasts that in the fourth quarter of this year, L&F will record sales of 411.4 billion KRW and an operating profit margin of 6.5%. Sales in the fourth quarter are expected to be at a level similar to that of EcoPro BM.

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