[Click eStock] "L&F Expected to Deliver 4Q Results Exceeding Consensus"

Despite Global Supply Chain Issues... Tesla's Spillover Effect Expected
Hana Financial Investment "L&F Target Price Raised from 290,000 KRW to 310,000 KRW"

[Asia Economy Reporter Gong Byung-sun] L&F is expected to post fourth-quarter results last year that exceed market consensus. The electric vehicle battery sector, centered on nickel, cobalt, manganese, and aluminum (NCMA), is anticipated to have contributed to the earnings growth.

On the 4th, Hana Financial Investment estimated L&F's fourth-quarter sales last year at 445.3 billion KRW, a 342% increase compared to the same period last year, and operating profit at 26.7 billion KRW, turning positive during the same period. The operating profit is about 11% higher than the consensus.

The growth in the electric vehicle battery sector appears to have driven the strong performance. This is also due to the effect of L&F's new production line operation. Due to the shortage of automotive semiconductors, the global battery supply chain's performance was generally sluggish. However, L&F's sales increase from the new production line is reflected. Accordingly, the fourth-quarter sales of the electric vehicle battery sector based on NCMA are expected to increase more than tenfold compared to the same period last year.

The Tesla spillover effect is also anticipated. Tesla, the largest client, recorded 310,000 vehicle deliveries in the fourth quarter last year, exceeding the consensus of 270,000 units. Kim Hyun-soo, a researcher at Hana Financial Investment, explained, "Despite future global supply chain issues, the benefits from Tesla's overwhelming production capacity will continue."

Future growth potential is also expected to be secured. The annual cathode material shipment volume last year is estimated at about 40,000 tons. Mid-to-long-term shipment volumes are expected to increase to 88,000 tons this year, 140,000 tons next year, and 200,000 tons in 2024. Hana Financial Investment also forecasted that L&F's operating profit will reach 364.1 billion KRW in 2024.

Accordingly, Hana Financial Investment maintained its investment opinion of "Buy" on L&F while raising the target stock price from 290,000 KRW to 310,000 KRW. The closing price on the previous day was 208,500 KRW.

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