[Click eStock] "L&F, Earnings Recovery Delayed... Long-Term Perspective Investment Needed"

Sangsangin Investment & Securities advised on the 9th that battery cathode material company L&F is expected to significantly improve its performance starting in 2026, recommending investment from a long-term perspective. The investment opinion was a neutral ‘Hold’ rather than an aggressive ‘Buy.’

Yoo Mingi, a researcher at Sangsangin Investment & Securities, forecasted, "Although sales of high-nickel products slightly increased, demand for ternary cathode materials for energy storage systems (ESS) declined, and inventory valuation losses will result in an operating loss of 76 billion KRW in the fourth quarter."

Researcher Yoo added, "Next year’s shipment volume is expected to be similar to this year’s," and expressed optimism that "sales volume will show an increasing trend starting in 2026." Specifically, he stated, "The sales contribution of ‘4680 cathode materials’ will not be significant next year," and predicted, "With the operation of the customer’s Arizona plant in the U.S. and the launch of new end-user products in 2026, sales of cylindrical battery (21700) cathode materials are expected to increase by 90% in the first quarter."

However, he noted, "As LFP is adopted as the dedicated cathode material for ESS, short-term ternary cathode material volumes for ESS will decrease." He added, "Sales to Europe are also unlikely to show significant results immediately, but performance recovery is expected from 2026."

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