"Even a Chicken Instead of a Pheasant"... LG Chem Attracts Investor Sentiment After a While

Closed up over 6.6% the previous day... Largest daily gain in four months
LG Energy Solution stake value reemphasized... Foreigners ranked first in net buying the previous day
"Still aligned with batteries"... Expectations for advanced materials investment and M&A

[Asia Economy Reporter Minwoo Lee] LG Chem's stock price rose the most in about four months. As the subscription for LG Energy Solution concluded, the value of LG Chem's stake was re-emphasized to investors, leading to a surge in investment sentiment.

As of 9:10 a.m. on the 21st, LG Chem's stock price recorded 710,000 KRW, up 2.01% from the previous day. It recovered to the 700,000 KRW range for the first time since the day before the start of the general investor subscription for LG Energy Solution on the 17th. On the day the subscription results were announced, it closed with a significant 6.58% increase. This is the largest single-day gain since a sharp 8.24% rise on September 23.

With LG Energy Solution's market capitalization evaluated at over 100 trillion KRW after its listing, there is an analysis that investment sentiment, which had been uncertain after the subscription ended, shifted to LG Chem, which holds an 82% stake in LG Energy Solution. On this day, LG Chem was also the most purchased stock by foreigners. A total net purchase of 22.6 billion KRW was recorded, contrasting with the net sale of 25.2 billion KRW the previous day.

Experts analyze that LG Chem's stake value has already been reflected at a low level, and the listing of LG Energy Solution presents a revaluation opportunity due to the resolution of uncertainties. Choi Gyo-un, a researcher at Korea Investment & Securities, said, "Growth potential in other business divisions had been overshadowed by uncertainties related to LG Energy Solution's listing, but now, based on the 2.5 trillion KRW old share sale and an annual EBITDA of 5 trillion KRW, LG Chem is focusing on battery material investments and mergers & acquisitions (M&A), diversifying advanced material growth engines beyond cathode materials and separators." He added, "As it grows alongside the battery sector, LG Chem will emerge as an investment alternative to LG Energy Solution."

However, due to short-term performance weakness and lowered expectations for the petrochemical sector, securities firms are somewhat lowering their target prices. Korea Investment & Securities lowered the target price from 1,060,000 KRW to 970,000 KRW, a decrease of about 8.5%. SK Securities and Mirae Asset Securities also lowered their target prices from 1,100,000 KRW to 840,000 KRW, and from 1,030,000 KRW to 980,000 KRW, respectively.

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