[EQUITIES] ‘LG Chem leads global secondary battery biz’
[THE INVESTOR] LG Chem has become the global leader in secondary battery sector, said NH Investment and Securities on June 12, maintaining a “buy” recommendation and 550,000 won (US$510.44) target price.
It is generating stable revenue through small batteries and is expanding manufacturing facilities to meet the surging demand for cylinder type batteries. Its polymer batteries market share will expand as it launches L-shaped batteries, and will top the global market, said analyst Hwang Yu-sik.
China’s largest secondary battery maker CALT has gone public and its stock price hiked 44 percent to 23.8 times price-earnings ratio and 2.6 times price to book ratio. Compared to its peers at home and abroad, LG Chem’s valuation is attractive, and seeing from the multiple hike of CALT, its battery business will be reevaluated, he added.
By Hwang You-mee (email@example.com)