[Featured Stock] L&F Drops 3% on US Factory Entry Approval Denial

[Asia Economy Reporter Minji Lee] L&F is showing a decline during trading hours. The news that the Ministry of Trade, Industry and Energy denied the plan to build a cathode material factory in the United States has negatively impacted the stock price.

As of 10:05 AM on the 15th, L&F was trading at 227,400 KRW, down 3.4% compared to the previous trading day. On the same day, the company's stock price fell to as low as 224,200 KRW during trading. It is analyzed that concerns have increased that overseas expansion may become difficult due to the Ministry's denial of the US cathode material factory construction plan, which could lower earnings estimates.

Yongwook Lee, a researcher at Hanwha Investment & Securities, analyzed, "L&F's entry into the US factory was a highly anticipated momentum related to the Tesla-Redwood partnership, but the government's rejection of overseas expansion approval seems to have raised concerns about the partnership."

However, the researcher emphasized that the current stock price decline is a buying opportunity. He explained, "The valuation of L&F does not reflect the expectations of the partnership with Redwood," adding, "Even if the existing export approval method is not granted, it is possible to directly establish overseas factories or enter after changing the business structure such as JV, so there is no need to worry about overseas facility expansion."

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