[Click eStock] "L&F Resolves Raw Material Internalization Issue... Target Price Up"

Daishin Securities raised the target price for L&F from 430,000 KRW to 500,000 KRW on the 27th.

L&F has set a goal of achieving sales of 24 trillion KRW and operating profit of 1.2 trillion KRW after 2026. To this end, the company plans to invest a total of 5 trillion KRW by 2026 to achieve vertical integration of the cathode material value chain. L&F's sales in 2022 were 3.887 trillion KRW, with an operating profit of 266 billion KRW.

The core business segment, cathode materials, aims for a production volume of 400,000 tons by 2026. For anode materials, L&F plans to establish a joint venture (JV) with Mitsubishi to mass-produce next-generation anode materials utilizing Mitsubishi Chemical's natural graphite anode technology.

Jeon Chang-hyun, a researcher at Daishin Securities, stated, "With the announcement of the mid- to long-term business plan, the issue of raw material internalization, which was the largest factor discounting the company's stock price compared to competitors, is expected to be resolved." He added, "In particular, the de-Chinaization of raw materials could lead to additional new orders in the North American market." He further noted, "Momentum for securing orders from Asian automakers targeting the North American market is becoming visible in the second half of the year, and new businesses (such as anode materials) are expected to provide additional upside."

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